Russia Proceeds With Efforts to Legalize Crypto Amid Sanctions Over Ukraine

Russia Proceeds With Efforts to Legalize Crypto Amid Sanctions Over Ukraine – Russia’s authorities are working to build a thorough legal framework for cryptocurrency transactions. The efforts, which began before Russia’s military invasion of Ukraine, are continuing amid fears that Moscow may exploit cryptocurrency to escape growing financial penalties.

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Despite the circumstances surrounding the Kremlin’s military invasion in neighboring Ukraine, efforts to legalize and regulate cryptocurrency transactions continue in Russia. An expert council supporting the crypto regulatory working group at the State Duma, Russia’s lower house of parliament, will convene to discuss new legislation.

The proposed law “On Digital Currency” will be discussed by the members of the body. The Ministry of Finance submitted the bill, which expresses its position on the issue.

Unlike the Central Bank of Russia, the Treasury Department favors rigorous regulation of the industry. The federal government and other organizations have approved its approach.

The Duma has announced the next meeting on Telegram, according to Bitnalog, a platform that advises Russians on how to pay their taxes on crypto income and earnings. It was originally set for Friday, but the source later informed channel subscribers that it had been rescheduled.

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In January, the Bank of Russia suggested a blanket ban on most crypto-related activity in the Russian Federation, including payments, trading, and mining of digital currency. Experts will now attempt to address the group’s concerns, which include the need to protect investors and highlighted risks to the country’s financial stability.

Also Read: Bitcoin Miners Catch a Break as Mining Difficulty Drops for the First Time in 3 Months

The ongoing drive to close regulatory gaps left when the law “On Digital Financial Assets” took effect last year comes amid worries that Russia may try to avoid international sanctions by using cryptocurrency. Russian banks have been kicked out of SWIFT, and Russian users have been denied access to bitcoin sites.

Meanwhile, Ukraine has become increasingly reliant on cryptocurrency to support its defense and humanitarian efforts. Millions of dollars in digital assets have been donated to the Kyiv government and volunteer organizations.

The Ukrainian parliament passed a law “On Virtual Assets” to regulate the country’s crypto space shortly before hostilities began.

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