The Bank of Russia is reportedly drafting a bill that would introduce an “experimental legal regime” for cryptocurrencies to be used solely in export-import deals. The head of the regulatory agency, Elvira Naiullina, said on Monday that crypto trading and payments within Russia will remain banned. However, digital assets issued in accordance with local law passed in 2020 can be used for cross-border deals alongside global decentralized cryptocurrencies. Naiullina added that special organizations will be created to mine crypto and process payments for cross-border trade deals. It remains unclear what these organizations will be.
The Russian government is also working on a bill that would establish a national agency to license and supervise cryptocurrency platforms operating within the country. Sergei Altukhov, a member of the Russian parliament’s economic policies committee, said that a new tax code will be introduced for miners as part of the regulation. Naiullina’s deputy, Alexey Guznov, revealed that the Bank of Russia is currently in talks with the government to determine what kind of organizations can participate in the experiment, what their business models should look like, and what banks they will be using. In the early stages of the experiment, government-sponsored companies are expected to participate.
The move comes as Russia attempts to avoid using crypto payments during the current situation, referring to international sanctions imposed on the country to exclude it from the U.S. dollar-powered global payment infrastructure. However, the country is not the only one looking to experiment with digital currencies. China has been piloting its digital yuan, while several central banks, including the European Central Bank, are exploring the possibility of issuing their own digital currencies.
Despite the increasing interest in digital currencies, there are still concerns over their regulation and security. In the case of Russia, the government has been cracking down on crypto trading and mining operations in recent years, citing concerns over money laundering and terrorist financing. However, the government’s stance appears to be shifting, with the latest move to introduce an experimental legal regime for cryptocurrencies.
It remains to be seen how successful the experiment will be and whether it will lead to wider adoption of digital currencies within Russia. However, the move is a significant step forward for the country’s crypto industry and could pave the way for further developments in the future. For now, the focus will be on creating a regulatory framework that balances innovation with security and compliance.
