Russian Parliament Legalizes Crypto for International Trade and Mining
Russian parliament passed a bill allowing the use of crypto for international trade and legalized crypto mining. This aims to ease transactions hampered by Western sanctions.
The legislation intends to facilitate international transactions for industries bypassing specific trade regulations. Reuters reports Russia had notable interruptions in transactions with China, India, UAE, and Turkey due to local banks’ caution under Western pressures.
Although the bill does not permit crypto for domestic payments, it marks a significant shift in Russia’s international crypto policy. This aims to enhance trade relationships and challenge regulatory dynamics. Venezuela has also used crypto to bypass sanctions, raising U.S. lawmakers’ concerns.
Russia Starts Legalizing Crypto Mining
The parliament passed a bill to legalize crypto mining, drafted by Deputy Anatoly Aksakov. It requires government and Bank of Russia regulations with federal monitoring. This aims to legalize mining, ensure income declarations, and facilitate tax payments.
The bill seeks to reduce legal risks by allowing mined digital currency sales without using Russian infrastructure, exempting these from currency regulations. Cryptocurrency advertising is banned, and it will take effect on September 1, 2024.
Impact on Crypto and U.S. Relations
This bill places Russia against U.S. efforts to limit its trade abilities. Treasury Secretary Janet Yellen monitored Russia’s crypto use to evade sanctions.
“We are very attentive to the [Russian] use of cryptocurrencies and stablecoins. We don’t think it’s a very substantial thing that Russia is doing but as our sanctions bite more and more, it becomes a concern,” Yellen said recently.
As sanctions tighten, Russia’s crypto use could alarm U.S. legislators. President Vladimir Putin supports using crypto to counteract sanctions despite concerns over bitcoin mining’s energy use. This legislative change signifies Russia’s determination to explore alternative financial systems amidst ongoing Western economic pressures.
