Russian Parliament to Review Crypto Bills and Mining Legislation to Legalize Crypto: Bloomberg

cryptonews.com:

The lower house of the Russian parliament, the State Duma, is set to review a cryptocurrency bill along with separate legislation on crypto mining in its second and third readings on Tuesday.

Anatoly Aksakov, head of the Duma’s financial market committee, told Bloomberg that the draft laws are expected to swiftly gain approval from senators in the Federation Council and be signed into law by President Vladimir Putin, with an effective date of September 1.

“Previously, there were fears that the legalization of cryptocurrency could create problems for the development of the domestic market,” Aksakov said.

“However, cryptocurrencies are an objective phenomenon and cannot be ignored.”

Russia’s move to regulate cryptocurrencies comes as the nation faces increasing pressure from US threats of secondary sanctions on foreign banks.

While the use of digital currency for payments is currently banned in Russia, President Putin recently urged the government to seize the opportunity to regulate this method domestically and for international transactions.

“Cryptocurrencies are increasingly used in the world as a means of payment in international settlements,” he said.

Russia is moving to regulate the use of cryptocurrencies, as companies wrestle with increasing difficulties in foreign payments under the threat of US sanctions https://t.co/z7IWKzzF5M

— Bloomberg Markets (@markets) July 30, 2024

The change in policy comes despite the central bank’s proposal for a blanket ban on cryptocurrencies in January 2022, citing risks to financial stability and economic security.

However, by the end of last year, the Bank of Russia softened its stance, supporting the experimental use of cryptocurrency and mining in cross-border settlements, although it