Russian companies have increasingly been using cryptocurrency for their financial transactions, according to a recent statement by the Chairman of the Parliamentary Committee on Financial Market, Anatoly Aksakov. The Russian government has also been working on adopting four relevant laws to regulate the use of cryptocurrency in the country.
Aksakov noted that many companies in Russia have already started using cryptocurrencies like Bitcoin, Litecoin, and Ethereum for cross-border transactions and other financial activities. This has prompted the government to implement new regulations to provide a legal framework for the use of these digital currencies in the country.
The Russian government has been grappling with the regulation of cryptocurrencies for years now. In 2019, President Vladimir Putin signed a new law on digital financial assets that provided some clarification on the legal status of cryptocurrencies in the country. However, the law did not provide for any specific rules or regulations for the cryptocurrency market.
According to Aksakov, the government is now working on four relevant laws aimed at regulating the crypto sphere. These laws include the Law on Digital Currency, the Law on Mining, the Law on Investment Platforms, and the Law on Crowdfunding. He added that the Duma, the lower house of the Russian parliament, will consider these laws in the autumn session.
The Law on Digital Currency will provide a legal definition of digital currency and regulate its use in the country. The Law on Mining will set rules for the mining of cryptocurrencies, including licensing requirements and taxation. The Law on Investment Platforms will provide a regulatory framework for cryptocurrency exchanges and other platforms that allow for the buying and selling of cryptocurrencies. Lastly, the Law on Crowdfunding will provide rules for the use of digital currencies in crowdfunding campaigns.
Aksakov emphasized that the proposed laws are not aimed at banning cryptocurrency in Russia but rather providing a legal framework for its use. He also expressed confidence that the laws will be passed by the parliament without any major obstacles.
The Russian government’s move to regulate the cryptocurrency market comes at a time when other countries are also working on their own regulations. The United States, for example, is currently developing a regulatory framework for cryptocurrencies, while China has been cracking down on the sector over concerns about financial stability and risks posed by speculative investments.
The use of cryptocurrencies has become increasingly prevalent in Russia in recent years, as more companies and individuals seek alternative ways of conducting financial transactions. The country has also seen a rise in the number of cryptocurrency exchanges and trading platforms, although these operate in a legal grey area.
By adopting these laws, the Russian government hopes to provide more clarity and security for the cryptocurrency market, while also promoting the growth and development of the digital economy. The government has previously expressed a desire to become a leader in the cryptocurrency market, and these regulations may help to achieve that goal.
In conclusion, Russian companies are increasingly using cryptocurrency for financial transactions, which has prompted the government to adopt four relevant laws to regulate its use. These laws include regulations on digital currency, mining, investment platforms, and crowdfunding. The laws aim to provide a legal framework for the use of cryptocurrencies in the country and promote the growth of the digital economy. With the Duma set to consider these laws in the autumn session, it remains to be seen what impact they will have on the cryptocurrency market in Russia.
Russian lawmakers have announced plans to adopt four bills to regulate cryptocurrencies by the end of July. The State Duma is proposing laws that will cover cryptocurrency mining, cross-border payments, taxation of digital assets, and the liability for illegal usage. Anatoly Aksakov, chairman of the parliamentary Financial Market Committee, has stated that the laws are well thought through and in the stage of practical adoption, which should be completed by the end of July. He also revealed that Russian companies are already actively using digital assets in foreign trade settlements. The laws will help establish a legal framework for using cryptocurrencies in Russia.
The current digital financial assets (DFAs) law, which came into effect in January 2021, only covers some crypto-related activities, including those involving digitised assets with an issuing entity. However, decentralised cryptocurrency transactions such as bitcoin are yet to be regulated in Russia. Aksakov stated that the government is trying to take into account market participants’ tax rules. It is expected that existing norms applicable to DFAs will be followed since it is a similar instrument.
The adoption of these new laws will make it easier for companies in Russia to utilise cryptocurrencies in their day-to-day business operations on the international scene. Cryptocurrency enthusiasts in Russia are eagerly awaiting these new laws since it has been a grey area for the past few years. Regulations will make it easier for businesses to utilise cryptocurrencies and for people to transact securely.
In the past, the Russian government had taken a hard stance on cryptocurrencies, but recently they have taken steps to incorporate digital assets into regulations. Russian authorities have ramped up their efforts following Western sanctions over Moscow’s invasion of Ukraine. The adoption of these new laws will be a major step towards legitimising cryptocurrencies in Russia.
In conclusion, the Russian government’s decision to adopt new crypto laws is a significant step forward for the cryptocurrency industry in the country. The laws will provide a legal framework for companies and individuals to transact using digital assets. These new regulations will make it easier for companies to utilise cryptocurrencies in international trade settlements, thus making it a more mainstream form of payment.
