Cryptocurrency traders in Russia are pushing for the legalization of digital assets, as they believe it will provide them with a legal framework to operate within. Anatoly Aksakov, the head of the State Duma Committee on Financial Markets, stated that traders are willing to work in a legal space because they often face difficulties in conducting settlements with Russian banks and foreign banks due to fears and concerns. In response to the growing popularity and use of digital currencies, Aksakov announced that cryptocurrency will become legal tender in Russia, subject to strict controls.
Aksakov emphasized the need for control and regulation of digital currencies to prevent any irregularities in their movement. He suggested that digital currencies could be used in foreign trade transactions, highlighting the benefits they offer such as instant transactions, no correspondent accounts, and minimal compliance procedures. The Finance Ministry of Russia also acknowledged the advantages of digital currencies in foreign trade and called for their consideration.
However, the use of digital currencies in Russia is currently limited due to restrictive legislation, including President Vladimir Putin’s 2020 law on digital financial assets. While the law legalized cryptocurrencies, it banned their use for goods and services. This has hindered the growth and adoption of digital currencies in Russia.
Russia has recently seen a surge in cryptocurrency mining, becoming the world’s second-largest cryptocurrency mining country. Bitriver, the nation’s largest bitcoin miner, reported this significant development. It reflects the increasing interest and investment in cryptocurrencies within Russia.
It is worth noting that cryptocurrencies are notorious for their high volatility, and there are currently no uniform international laws that regulate them. The most popular cryptocurrency, Bitcoin, witnessed a meteoric rise in value since its inception in 2009, reaching a peak of nearly $69,000 per coin in November 2021. Currently, Bitcoin’s price is above $30,000, highlighting the rapid fluctuations in the cryptocurrency market.
In conclusion, Russia is considering the legalization of cryptocurrency as legal tender, subject to stringent controls and regulations. This move is driven by the growing demand for digital assets and the need for a legal framework to facilitate transactions. Despite restrictive legislation, such as the ban on using cryptocurrencies for goods and services, the Finance Ministry recognizes the benefits of digital currencies in foreign trade. As digital currencies continue to evolve and gain popularity globally, it remains essential for countries to establish comprehensive regulations to ensure their stability and protect investors.
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