Russian Parliament Passes Bill Legalizing Crypto for International Trade and Mining

The Russian parliament has made a groundbreaking decision by passing a bill that allows the use of cryptocurrency for international trade and legalizing crypto mining within the country. This move comes as a response to the challenges posed by Western sanctions and regulatory pressures on local banks, which have hindered global transactions with key trading partners.

While crypto is still not permitted for domestic payments in Russia, this new legislation represents a significant shift in the country’s approach to digital currencies on the international stage. The aim is to facilitate smoother international transactions and bypass specific trade regulations that have been causing disruptions in trade relationships with countries like China, India, the United Arab Emirates, and Turkey.

The bill also includes provisions to regulate cryptocurrency mining activities in Russia, ensuring compliance with government and Bank of Russia regulations. This initiative seeks to legalize mining, monitor income declaration, facilitate tax payments, and reduce legal risks associated with the sale of mined digital currencies.

The approval of this bill has implications for Russia’s relations with the United States, as it puts the country at odds with U.S. efforts to restrict Moscow’s international trade capabilities. U.S. officials, including Treasury Secretary Janet Yellen, have expressed concerns about Russia’s use of crypto to evade sanctions and its potential impact on international trade dynamics.

Despite criticism of bitcoin mining’s energy consumption, President Vladimir Putin has shown support for using crypto to mitigate the effects of international sanctions. This legislative development highlights Russia’s determination to explore alternative financial mechanisms and sustain its international trade amidst ongoing economic pressures from the West.