In the midst of an increasing global interest in cryptocurrencies, Russia has joined the fray with companies embracing digital assets at an unprecedented rate.
With the country’s parliament actively working on the legal framework for cryptocurrencies, businesses are eagerly awaiting the green light to fully incorporate crypto transactions into their operations.
The Russian authorities are also stepping up their efforts to comprehensively regulate cryptocurrencies, in part due to the pressure from Western sanctions.
Russia anticipating crypto regulations
The State Duma, the lower house of the Russian parliament, is expected to pass four crucial bills during its spring session, which ends on July 30th, according to Anatoly Aksakov, chairman of the parliamentary Financial Market Committee.
These bills aim to regulate various aspects of the crypto industry, including mining, cross-border payments, taxation of digital assets, and liability for illegal use. Aksakov emphasized that these draft laws are well thought through and have been developed with input from industry stakeholders.
Despite the absence of comprehensive legislation, large Russian companies have already begun using cryptocurrencies for foreign trade settlements.
However, these businesses are eager for the legal framework to be established, ensuring the legitimacy and security of such transactions.
Aksakov noted that the authorities are taking market participants’ opinions into account regarding tax rules, likely incorporating norms applicable to Digital Financial Assets (DFAs) in the new regulations.
Bridging the gap in crypto legislation
The law “On Digital Financial Assets” took effect in January 2021, but it only covers certain crypto-related activities, particularly those involving digital assets with an issuing entity, such as tokenized traditional assets or utility tokens.
Decentralized cryptocurrencies like Bitcoin are still awaiting comprehensive regulation in Russia.
With the pressure of Western sanctions due to Moscow’s invasion of Ukraine, Russian authorities have been compelled to accelerate their efforts to regulate cryptocurrencies.
Aksakov expressed confidence that the four bills will likely be adopted during the spring session, marking a significant step forward for the country’s burgeoning crypto landscape.
As Russia is on the verge of finalizing its cryptocurrency regulations, businesses in the country are eager to take advantage of the many opportunities presented by digital assets.
The Russian parliament’s efforts to create a solid legal framework for the crypto industry signal a strong commitment to embracing this new technology and its potential for growth.
With the adoption of these four bills, Russia is poised to become a key player in the global cryptocurrency market, further fueling the nation’s enthusiasm for this rapidly evolving financial landscape.
