Russia has passed two crypto bills to facilitate the use of cryptocurrency in international trades and regulate crypto mining.
Points
- Russia passed two bills to use cryptocurrency for international trades.
- The first bill allows crypto payments for cross-border transactions.
- The second bill legalizes cryptocurrency mining.
- The legislation aims to mitigate the impact of Western sanctions.
- Russia looks to bypass SWIFT restrictions with crypto.
In a significant legislative move, Russia has passed two crypto bills aimed at facilitating international payments and regulating crypto mining. These actions come as Russia seeks to mitigate the economic impact of Western sanctions imposed following its conflict with Ukraine.
The first bill permits the use of cryptocurrency for international trades. This will enable the Central Bank of Russia to pilot projects exploring crypto’s role in cross-border transactions. Faced with severe disruptions in global trade and delays in international payments, Russia aims to use cryptocurrencies to bypass the SWIFT system and secondary sanctions from Western regulators.
The second bill legalizes cryptocurrency mining in Russia. This new legislation mandates that the Bank of Russia and the government develop regulations for crypto mining, which will be overseen by a federal entity. By legalizing and regulating mining, Russia aims to generate tax revenue and ensure income declaration.
These legislative moves are part of Russia’s broader strategy to adapt to international financial isolation by leveraging the anonymity and global reach of cryptocurrencies. Similar steps have been taken by countries like Venezuela to circumvent Western sanctions.
Analysis
- Economic Strategy: Russia’s adoption of cryptocurrency for international trades highlights its efforts to circumvent economic sanctions.
- Mining Regulation: Legalizing crypto mining could boost Russia’s economy through increased tax revenue and declared income.
- Global Impact: These legislative changes could influence other countries facing similar economic sanctions to consider cryptocurrency as an alternative payment method.