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Monday, March 20, 2023

Crypto Assets Can Help Russia Return to Global Financial Market – Lawmaker Says

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Crypto Assets Can Help Russia Return to Global Financial Market –  According to a lawmaker working on crypto regulations, digital financial assets such as cryptocurrency can enable Russia access to the global financial market despite Western sanctions. According to the official, the government is capable of establishing domestic crypto exchanges and should encourage mining.

According to a member of Russia’s lower house of parliament, the crypto sector is a difficult area where imposing constraints on Russia is tough. In an interview with Parliamentskaya Gazeta, Alexander Yakubovsky noted that the country has the ability to create its own cryptocurrency exchanges and use alternative payment schemes and platforms.

The lawmaker confirmed that global trading platforms like Binance are being pressured to support Russian Federation sanctions. At the same, he stated that professionals from the world’s largest crypto exchange are helping legislators in Russia’s efforts to create a legislative framework for digital assets.

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Also Read: Upcoming AML Regulations in Estonia to Affect Cryptocurrency Industry

According to Yakubovsky, a member of the Duma working group tasked with creating comprehensive crypto rules – the proposed legislation will provide Russia access to the financial industry, which western countries are now striving to restrict for Moscow.

This will be determined by how effective the new structure is, he explained, adding:

“Competent development of digital financial assets will mitigate the negative effects of the country’s sanctions.”

The official said, Russian crypto miners will not leave the global mining market. Last year, Russia came third in terms of mining capacity, which he described as an “enormous amount of power,” according to Yakubovsky. In addition, the country has excess generating capacity, which he believes should be utilized.

When asked about the discrepancies between the Russian Central Bank, which suggested a blanket crypto ban in January, and the Finance Ministry, which advocates stringent regulation, the deputy noted that the situation has changed. 

Also Read: Zapala Free Zone to Offer New Opportunities to Bitcoin Miners in Argentina

Minfin’s approach has the approval of the majority of government entities, and a report released in early March suggested that Russian authorities were moving forward with legalizing measures.

After the law “On Digital Financial Assets” entered into effect last year, lawmakers and experts from several agencies have been working to address the regulatory gaps that remained.

In February, Russia’s Ministry of Finance filed to the federal government a draft law titled “On Digital Currency,” which intends to legitimize crypto investments while confirming the country’s ban on cryptocurrency payments.

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