• Russia is planning to legalize cryptocurrency for foreign trade activities in January 2021.
• The circulation of cryptos as a means of payment in Russia will be prohibited, with liability prescribed for violation.
• The idea of using cryptocurrencies for foreign trade activities has gained traction in Russia recently, following US sanctions and the Ministry of Finance’s proposal.
Russian authorities have been discussing the possibility of allowing cryptocurrency payments for foreign trade activities over the past few months. On Tuesday, Anatoly Aksakov, the chairman of the country’s Congressional finance committee, said the nation is moving to greenlight international trade in cryptocurrency within the next month.
Aksakov highlighted that while Russia is taking steps to allow bitcoin and cryptocurrency payments for imports, there are no plans to encourage similar usage of the burgeoning assets within the boundaries of the nation’s territory. He said that the circulation of cryptocurrencies as a means of payment on the territory of Russia will be prohibited, and liability will be prescribed in this regard.
The idea of using cryptocurrencies for foreign trade activities has gained traction in Russia recently, following US sanctions and the Ministry of Finance’s proposal. Last month, Russian officials said the nation was open to selling natural gas for bitcoin, with the chairman of the country’s Congressional energy committee, Pavel Zavalny, saying: “There can be a variety of currencies, and that’s a standard practice. If they want bitcoin, we will trade in bitcoin.”
The efforts to legalize cryptocurrency for international trade activities in Russia began in January 2022, when the Ministry of Finance submitted a proposal. This was followed by the announcement of the first tranche of US sanctions against Russia, which blocked five of the biggest Russian banks and froze all the assets they held in America.
Russia has already laid out a roadmap for bitcoin regulation and the country is now taking steps to make it a reality. In January 2021, Russia will be legalizing cryptocurrencies for foreign trade activities in order to ensure that such transactions are conducted legally and efficiently. Aksakov said that while the circulation of cryptos as a means of payment in Russia will be prohibited, they will still be allowed to be used to pay for foreign trade transactions.
The move is likely to be welcomed by many people in the cryptocurrency space, as it will give them another avenue to legally use their digital assets. It could also help to boost the international trading activities of Russian companies, as they will be able to pay for imports using cryptocurrencies.
Overall, the legalization of cryptocurrencies for foreign trade activities in Russia is seen as a positive move, as it will open up another avenue for both individuals and businesses to conduct their transactions. The move could also help to reduce the impact of sanctions on the Russian economy, as it will give companies another way to pay for imports.