In Russia, they are planning to legalize the use of cryptocurrency to improve settlements with partners against the background of Western sanctions.
Points of attention
- Russia plans to legalize the use of cryptocurrencies in order to avoid Western sanctions.
- This solution can improve settlements with trading partners and suppliers.
- Previous concerns about the impact of cryptocurrencies on the domestic market have given way to a desire to avoid sanctions.
- The Central Bank of the Russian Federation initially opposed cryptocurrencies, but later supported their experimental use for international payments.
- Bills on cryptocurrencies in Russia provide for control over the circulation of digital currencies by regulators and special services.
How Russia plans to circumvent Western sanctions with the help of cryptocurrency
The article emphasizes that on July 30, the State Duma of the aggressor country plans to finally approve the legalization of cryptocurrencies and a number of separate laws on mining.
Anatoliy Aksakov, head of the committee on the financial market, predicts that the draft laws will be quickly approved and sent to Kremlin dictator Vladimir Putin for signature.
It is expected that the approved laws will enter into force on September 1.
Previously, there were fears that the legalization of cryptocurrency could create problems for the development of the domestic market. Although cryptocurrencies can help Russia circumvent Western sanctions, their use is "an objective phenomenon that cannot be ignored," Aksakov said.
It is emphasized that the Russian leadership is taking such steps against the background of problems with settlements with trading partners, in particular, suppliers from China due to secondary sanctions against foreign banks introduced by the USA.
Can the legalization of cryptocurrency help Russia circumvent Western sanctions?
In January 2022, just weeks before the start of Russia's full-scale invasion of Ukraine, the Russian central bank proposed a blanket ban on the use and creation of cryptocurrencies, arguing that they pose serious risks to financial stability and economic security.
At the same time, at the end of last year, the central bank of the Russian Federation softened its position, supporting the experimental use of cryptocurrency and mining in cross-border settlements. Nevertheless, the bank urged financial organizations in Russia not to advertise services related to digital currencies.
According to the law, the regulator for cryptocurrency issues will be the Bank of Russia, and the Federal Financial Monitoring Service, the Federal Tax Service, the Federal Security Service and Rosmaino will control the circulation of cryptocurrency.
