Regulation
Russia Seeks Crypto Legalization Despite Sanctions Pressure
The Russian State Duma, the lower house of the Russian parliament, is reviewing regulations for the possible legalization of cryptocurrencies.
Chairman of the State Duma Committee on Financial Market Anatoly Aksakov Bloomberg said that more crypto-friendly draft laws are being reviewed. He said that these drafts are expected to soon get approval from Federation Council senators and then become law after approval by President Vladimir Putin on September 1. He said:
Previously, there were fears that the legalization of cryptocurrencies could create problems for the development of the domestic market. […] However, cryptocurrencies are an objective phenomenon and cannot be ignored.”
Will Russia Avoid Sanctions With Cryptocurrencies?
Russia’s shift in stance on cryptocurrencies follows increasing pressure from the United States considering the imposition of secondary sanctions on foreign banks.
Although cryptocurrency payments are currently banned in Russia, Putin recently told local officials that cryptocurrencies “are increasingly used around the world as a means of payment in international settlements.” He also suggested that the nation “should not miss the moment” to regulate cryptocurrencies.
The new regulation would treat the use of cryptocurrencies in Russia the same as the use of foreign currencies, according to Aksakov. Cryptocurrency analyst Ani Aslanyan told Bloomberg that local authorities are in a hurry, hoping cryptocurrencies will improve cross-border transfers.
However, the US will likely try to block Russia’s attempts to evade sanctions by monitoring and targeting cryptocurrency services and companies. The laws also won’t fully liberalize cryptocurrencies.
Aslanyan noted that only large exporters are likely to meet the conditions for legal use of cryptocurrencies, leaving small and medium-sized businesses behind. For example, transactions will presumably be limited to those who have mined the coins themselves.
As Russia seeks help in its crypto challenge to Western powers, blockchain technology has recently hit the nation. As ReadWrite reported in MayFollowing Vladimir Putin’s dubious victory in Russia’s recent presidential election, exiled opposition leader Mark Feygin has spearheaded an initiative to allow Russians to anonymously register a “protest vote” against Putin using blockchain technology.