Russia signs law to promote use of cryptocurrencies in international trade

Russian President Vladimir Putin took a significant step toward integrating cryptocurrencies into the global economy by signing into law a new law on August 8 that establishes experimental legal frameworks for the use of these digital technologies in international trade.

The legislation, which aims to boost the adoption of cryptocurrencies in cross-border transactions, reflects Russia’s strategy of seeking economic alternatives in the face of international sanctions and the increasing digitalization of global finance.

The new law allows for the modification of several legislative provisions. In this way, it paves the way for the use of cryptocurrencies in international trade agreements. Until now, this was restricted by the country’s strict financial regulations.

In addition, the legislation authorizes changes to key definitions such as “currency values” and “electronic platforms.” In practice, this facilitates the development of cryptocurrency trading platforms and the integration of these digital currencies into the Russian financial system.

Russia plans to use cryptocurrencies in international trade

One of the most important aspects of the new legislation is the supervision assigned to the Bank of Russia over cryptocurrency pilot projects. This supervision includes, for example, the authorization of the use of cryptocurrencies in foreign trade settlements. In addition, it covers the organization of digital currency trading and the development of an electronic platform within the national payment system.

Central Bank Governor Elvira Nabiullina had already anticipated in July that the first transactions under this new regime could take place by the end of the year, highlighting the speed with which Russia intends to implement this new structure.

The law also provides that any experimental legal regime involving digital currencies must obtain approval from several government agencies, including the Ministry of Finance, the Federal Security Service (FSB) and the Federal Financial Monitoring Service (Rosfinmonitoring).

This requirement ensures that the new regulations are implemented with maximum security and control. This minimizes the risk of money laundering and other illicit activities.

In addition to promoting the use of cryptocurrencies in international trade, Putin signed into law a bill regulating cryptocurrency mining in Russia on the same day.

This legislation, which is expected to come into force later this year, marks Russia’s official entry into the global race to adopt and regulate cryptocurrencies. It is a move that could position the country as a strategic player in the digital financial market.

Follow Afrilatest on