
- Russia may be making a U-turn on its stance on crypto.
- Lawmakers in the country are revising crypto regulations.
- Certain aspects of the government’s no-crypto stance still stand.
Despite the growing influence of the crypto industry, global regulatory standards remain uneven. For some regions, the asset class is seen as the revolutionary future of the financial system, while others distance themselves from it. Among the latter category is Russia, which has always taken a firm stance against the industry.
However, in a surprising twist of events, the government may now turn to the once-rejected asset class to solve its ongoing woes.
Russia Softens Towards Crypto
Recent reports suggest that Russian lawmakers are becoming more open to cryptocurrency use. On Tuesday, July 30, 2024, Bloomberg reported that legislators within the country passed a bill to regulate crypto assets as a foreign currency, allowing its use among businesses to facilitate international trade.
Sponsored
The decision is in response to the increasing difficulty in facilitating foreign financial payment services among major trading institutions due to regulatory pressure and sanctions from the United States amid the ongoing geopolitical conflicts.
The regulatory revision will extend to the crypto mining sector, which the government also previously opposed due to potential electricity concerns.
Russia’s revised regulations are expected to take full effect in September 2024. However, despite the positive shift from the once-anti-crypto stance, the new law will not lift the existing ban on crypto use within the region.
Russiaโs Crypto Ban
The Russian government and the crypto industry have had a rather complicated relationship, marked by a blanket ban on the use of the asset class and sanctions on service providers within the region. In April 2024, members of the Russian State Duma re-introduced a proposal to ban the circulation and use of private cryptocurrencies within the country.
This proposal, expected to take effect on September 1, 2024, aims to prioritize the digital ruble over regular crypto assets and position it as the country’s official currency.
Following up on the proposal, Russiaโs Central Bank head, Elvira Nabiullina, announced on July 30 that the digital ruble would enter into โmass productionโ in July 2025, provided everything goes as planned and the pilots are successfully completed.
The digital currency pilot is currently in its first testing stage. So far, it has involved 12 banks, 600 individuals, and 22 trade and service enterprises from 11 cities.
On the Flipside
- Sanctions have forced crypto exchanges, including Binance, to halt services and exclude users within the region.
- Russia is the third largest Bitcoin mining country after the US and China.
Why This Matters
Russia’s reported consideration of crypto reinforces the asset class’s recognition as a worthy financial instrument, even by previously skeptical regions. Additionally, revising its once-anti-crypto stance may mark Russiaโs first step toward fully embracing the asset class.
Read more about the Russian policy change and the reasons behind it in this article:
Why Russiaโs Crypto Policy Could Be Taking a U-Turn
Discover the latest movements of funds by crypto exchange Mt. Gox amid its ongoing creditor settlement:
Mt. Gox Tests BTC Payments: Are Repayments Finally Moving?