Russia has recently passed two crypto bills in an effort to save their economy which has been greatly affected by Western sanctions. The first bill allows for the use of cryptocurrency as a payment method for international trades. This will help Russia bypass the delays in payments coming from international markets and minimize the risk of secondary sanctions from Western regulators. The Central bank of Russia has stated that the delays in payments have caused an 8% decline in Russian imports, highlighting the urgency for this bill to be implemented.
The second bill legalizes cryptocurrency mining in Russia and mandates regulations for this industry. The aim is to make crypto mining legal in the country, facilitate tax payments, and ensure the declaration of income. This bill will be monitored and administered by a federal entity, further solidifying the government’s control over the cryptocurrency industry in Russia. The bills have been passed in the lower house of the Russian parliament and will soon be sent to the upper house for voting before being sent to the President for final approval.
The implementation of these two crypto bills is a significant legislative move for Russia, especially in the wake of their recent attack on Ukraine which has led to their exclusion from the global payments network. By allowing the use of cryptocurrency for international trades and legalizing crypto mining, Russia hopes to mitigate the economic impact of Western sanctions. These bills will also help certain industries bypass regulations and access banned goods more easily.
It is important to note that while Russia is moving towards accepting cryptocurrency for international trades, they still maintain a full ban on crypto for domestic trades. The bills, once approved, are set to take effect on the 1st of September, 2024. This move by Russia is not unique, as other countries like Venezuela have also turned to cryptocurrency to bypass Western regulators. However, these bills will likely add more tension to the already strained relationship between Russia and Western countries.
In conclusion, the passage of these two crypto bills in Russia marks a significant shift in their economic strategy as they look to navigate the challenges posed by Western sanctions. By utilizing cryptocurrency for international trades and legalizing crypto mining, Russia is taking steps to protect their economy and reduce legal risks. The impact of these bills remains to be seen, but they are likely to have far-reaching consequences for Russia’s economic policies and relationships with Western countries.
