The Russian parliament has approved a bill allowing cryptocurrency for international trade and legalizing cryptocurrency mining. The bill now awaits final approval from the federation to take effect from September 1, 2024.
The purpose of this law is to solve the difficulties that Russian banks have faced as a result of regulatory constraints and Western sanctions, which have interfered with international trade with important trading partners.
Recently, Russia has seen significant disruptions in international trade with important commercial partners like China, India, the United Arab Emirates, and Turkey. This is because local banks have become more cautious as a result of pressure from authorities in the West.
The government will establish a regulatory framework to oversee mining activities, ensuring tax compliance and preventing illicit operations. Mined cryptocurrencies can be sold without adhering to domestic currency regulations, providing a new avenue for Russian businesses.
The bill’s authorization of Bitcoin mining is one of its key features. Drafted by Deputy Anatoly Aksakov and others, the law requires that mining activities be regulated by the government and the Bank of Russia, with a federal authority ensuring compliance.
The initiative aims to bring mining activities out of the shadows, ensuring that income is declared and taxes are paid. Additionally, the bill allows the sale of mined digital currencies without using Russian information infrastructure and exempts these transactions from currency regulation laws.
While the use of cryptocurrencies for domestic payments remains prohibited in Russia, this new legislation marks a significant shift in the country’s approach to digital currencies on an international level.
Russia aims to challenge the existing global regulatory dynamics and strengthen its economic resilience by embracing cryptocurrencies for international trade. The bill also includes a ban on cryptocurrency advertising, which is intended to control the spread of digital currency usage within the country.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/07/24/russia-and-hamster-kombat-only-40-russians-aware-of-game/" target="_blank" rel="noopener noreferrer nofollow">Russia and Hamster Kombat: 40% Russians aware of viral game</a>
</blockquote>

Russian Parliament Approves Crypto Use for Trade and Mining

The Crypto Times

Other articles published on Jul 24, 2024

Senator Cynthia Lummis Slams Biden Administration's 'Dangerous Scheme' To Impose 30% Tax On Bitco...

Ethereum ETFs Launch with Strong Volume; Traders Expect New ATHs Above $3,730 Soon

Binance Labs Leads an Investment Round for Pluto Studio

Mercuryo Launches Fiat-to-Crypto Services, Enabling Indonesians to Send and Receive Digital Tokens

Klasha appoints Justin Fan as Managing Director, Asia Operations to lead its expansion into Asia

BlockFi Clears FTX-Related Claims, Readies For Final Creditor Distributions

Join our free newsletter for daily crypto updates!