Russia Close to Legalizing International Trade in Bitcoin, Crypto: Head of Finance Committee

The head of the State Duma finance committee reportedly said Russia will legalize the use of cryptocurrency for international trade in January 2023.Author:NamciosPublish date:Dec 23, 2022Moscow/Wikimedia CommonsThe head of the State Duma finance committee reportedly said Russia will legalize the use of cryptocurrency for international trade in January 2023.Russia’s Congressional finance committee chairman, Anatoly Aksakov, said the country is moving to greenlight international trade in cryptocurrency within the next month, according to a report by national news agency TASS. According to a translation of the report, Aksakov stated that Russia will legalize cryptocurrency in January to facilitate foreign trade activities. According to Aksakov, “The circulation and payment of cryptocurrencies on the territory of Russia” will be banned. “But to pay foreign trade transactions, however, we still assume that cryptocurrencies could be used for parallel imports. Russian officials have been hinting at this possibility for nearly a year. This is after a string of Western sanctions that were imposed in the aftermath of Ukraine’s invasion. In January 2022, Russia laid out a roadmap to regulate bitcoin, and the Ministry of Finance submitted a proposal the following month. The first tranche of Russian sanctions was announced by the U.S. President Biden. It targeted five of the largest Russian banks and froze all assets. Russia declared that it was open to trading natural gas for bitcoin a month later. “There can be many currencies, and that’s a common practice. Pavel Zavalny (chairman of the country’s Congressional energy committee), stated that if someone wants bitcoin, they can trade in bitcoin. Soon, the idea gained momentum and various areas of Russia’s government started to endorse it. The country’s tax authority proposed an amendment to the local cryptocurrency bill in April to allow entities to accept cryptocurrency payments in foreign trade. The matter was being “actively considered” in Russia by May. This was despite the Bank of Russia’s previous calls for a ban on cryptocurrency and bitcoin. In June, it first suggested that bitcoin payments could be allowed for international settlement. The Ministry of Finance and Russia’s central bank reached an agreement in September that it would not be possible to conduct cross-border settlements in cryptocurrency. “Now, as the year draws to a close, the legal basis to allow such payments is about to become a reality, per the TASS report.Tagsterms:International PaymentsRegulationLegalRussiaBitcoin Payments

 

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