Russia’s lower house, the State Duma, recently passed a bill allowing certain Russian businesses to use crypto assets for international trade, not domestic payments. This bill is set to go into effect in September and will impact cross-border payments and non-trading mining operations, with the first transactions under this law expected to take place before the end of the year. However, the bill does not legalize cryptocurrencies as domestic currency or for general use within Russia.
While social media posts have circulated claiming that Russia has embraced crypto and legalized cryptocurrencies, these claims are an exaggeration of the actual events. The bill passed by the State Duma only allows for specific uses of crypto assets in international trade and does not legalize the use of cryptocurrencies in everyday domestic transactions. The law also mandates Russia’s central bank to create new infrastructure for these crypto payments, with no set timeline for its public release.
It is important to note that the fake news surrounding Russia’s supposed embrace of bitcoin mining and crypto payments is not the result of a purposeful misinformation campaign by the Kremlin. Instead, it is a misunderstanding of Russian law and the government’s history of making ceremonial or vacuous announcements regarding crypto use. The misinformation has led to exaggerated claims on social media about Russia legalizing cryptocurrencies and embracing crypto as a foreign currency.
The news of the passing of the bill by Russia’s lower house has been misconstrued as a significant step towards fully embracing cryptocurrencies within the country. However, the reality is that the bill only allows for limited use of crypto assets in international trade and does not signify a full legalization of cryptocurrencies in Russia. The bill is expected to go into effect in September, with the first transactions under this new law likely to take place before the end of the year.
While the bill passed by the State Duma is a noteworthy development in the realm of crypto regulation in Russia, it is essential to understand its limitations and the specific scope of its application. The bill does not legalize cryptocurrencies for general use within Russia or as an official foreign currency. Instead, it focuses on facilitating cross-border payments and non-trading mining operations, with the central bank tasked with creating the necessary infrastructure for these transactions.
Overall, the passing of the bill by Russia’s lower house represents a step towards regulating the use of cryptocurrencies in specific international trade contexts. While the bill does not legalize cryptocurrencies or allow for their use in domestic transactions, it sets a framework for certain businesses to utilize crypto assets for cross-border payments. With the implementation of this law expected in September, it will be interesting to see how it impacts the crypto landscape in Russia and whether it leads to further developments in the regulation of digital assets within the country.
