Authorities in Russia are continuing their work to establish a comprehensive legal framework for crypto transactions. The efforts, which started before the military invasion of Ukraine, go on amid warnings that Moscow may use cryptocurrencies to evade expanding financial sanctions.
Expert council meets in Russia to discuss ‘digital currency’ law
Attempts to legalize and regulate operations with cryptocurrencies are underway in Russia, despite the situation surrounding the military assault launched by the Kremlin in neighboring Ukraine. A council of experts supporting the task force on cryptography regulation in the State Duma, the lower house of parliament, is meeting today to consider the new legislation.
The members of the body will hold discussions on the draft law “On Digital Currency.” The bill was submitted by the Ministry of Finance and reflects its concept on the matter. Unlike the Central Bank of Russia, the treasury department favors legalizing the industry under strict rules. Its approach has been backed by the federal government and other institutions.
Bitnalog, a portal advising Russians on how to pay their taxes on crypto income and profits, posted an announcement from the Duma on Telegram about the upcoming meeting. It was originally scheduled to take place on Friday, but the outlet later informed its channel subscribers that it had been rescheduled for Saturday, March 5.
In January, Bank of Russia proposed a blanket ban on most crypto-related activities, including use in payments, trading, and mining of digital currencies in the Russian Federation. The experts will now try to address its concerns, including highlighted risks for the country’s financial stability and the need to protect investors.
Renewed efforts to close remaining regulatory loopholes after the ‘digital financial assets’ law came into effect last year, comes amid warnings that Russia may try to use crypto -currencies to circumvent international sanctions. These include kicking Russian banks out of SWIFT and restricting access to cryptocurrency platforms for Russian users.
Meanwhile, Ukraine itself has been increasingly relying on cryptocurrencies to fund its defense efforts and solve humanitarian problems. Millions in digital assets have been donated to the government in Kyiv and volunteer groups. Shortly before hostilities began, the Ukrainian parliament adopted a law “On Virtual Assets” to regulate the country’s crypto space.
