- Russia’s bill expands crypto trading and access, but does not allow domestic payment use.
- Russia’s proposed crypto legislation is to counter the effects of Western sanctions.
- The new bill is a complete turnaround in Russia’s stance on cryptocurrency.
Russia is on the verge of adopting cryptocurrency into its mainstream financial sector.
According to reports, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, stated that a bill to exempt cryptocurrency from special financial regulation has already been drafted. Aksakov noted that the proposed legislation will standardize the use of digital currency among Russian citizens.
Crypto Accessibility to Non-Qualified Investors
In the meantime, Aksakov clarified that the Russian government will henceforth pay significant attention to the development of digital financial assets. According to him, the authorities will de-escalate restrictions in the crypto sector, making the market accessible to non-qualified investors. However, he also noted that there will be a 300,000 ruble, equivalent to $3,800 limit to the amount of digital currency that can be purchased over a given period.
Notably, the draft bill extends to cross-border transactions and international settlements. While explaining the details of the bill, Aksakov stated that professional financial market participants will be able to operate without restrictions under the new dispensation. He further noted that crypto users in Russia can engage in international settlements, including issuing their tokens within the region while placing them on the financial markets of other countries.
A Switch to Counter Western Sanctions
The latest legislative switch on the crypto ban in Russia trails the heightened sanctions from the Western world following the war between Russia and Ukraine. Part of the sanctions include cutting off the SWIFT payment system to the region, freezing of foreign exchange reserves, and excluding major Russian banks from the international financial system.
Last year, Aksakov firmly stated that cryptocurrency had no chance of serving as a means of payment in Russia. The story is different today, with the same lawmaker campaigning for the new bill that would change the technology’s status in the region.
Related: Russia’s Digital Ruble Will Undercut Own MIR Card System, Says Freedom Finance Analyst
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