Russian Prime Minister Mikhail Mishustin has directed the government to adopt regulations for digital currencies by December 19, 2022. The Duma and other state bodies have received specific instructions from the Prime Minister that there must be synchronized rules in place with relation to the issuance and use of cryptocurrencies or digital currencies in Russia.
Mishustin has spoken on the need for rules relating to crypto mining and international transactions in addition to issuance and circulation.
The Russian Finance Ministry, the Central Bank, the Federal Tax Service, and the Federal Security Service must all be in agreement with the proposed crypto regulations.
This confirmation demonstrates that Russia has started to treat cryptocurrency-related issues seriously, particularly those regarding international payments.
Russia’s position on digital assets has generated a lot of controversies. While the Russian central bank continues to oppose the legalisation of exchanges and approval of digital assets as a form of payment, it wants to permit cross-border transactions.
The idea of outlawing exchanges while permitting cross-border payments has generated a lot of controversies, made more so by the fact that Russia has yet to put in place a framework that would include relevant regulations. Cross-border payment legislation must be developed in order to make it easier for foreign investors and issuers to access the Russian financial system. For cross-border transactions to go smoothly, a remote identification system must be in place.
Even after adopting significant crypto-related laws called Digital Financial Assets in 2020, Russia’s legal framework relating to digital assets is still vague and unsettled. The Russian financial watchdogs still haven’t licenced any local platforms for trading digital assets, only allowing transactions on well-known exchanges like Binance.
This regulation outlawed the use of bitcoin as payment by Russians, but it left open the possibility of mining and trading cryptocurrencies in Russia.