- International cryptocurrency payments will become the norm
- The law “On digital currency” and its logical application
- Regulation of mining in the Russian Federation
For many states, cryptocurrency is becoming a way to normalize the economy and circumvent the numerous sanctions imposed by Western countries. Iran has done so, and Russia has followed suit.
With the disconnection from international financial systems, payments with foreign counterparties have become problematic. In this regard, the Ministry of Finance, the Central Bank of Russia and the Rosfinmonitoring agency began to develop procedures for issuing and regulating the circulation of cryptocurrencies.
It is planned to launch pilot projects by the end of 2022. Deputy Minister of Finance Alexei Moiseyev has already announced the approval of the bill on cross-border payments. Cryptocurrency will not replace the ruble, but will become an alternative for those partners who have no opportunity to pay in the national currency of Russia.
“The activities of organizations that will carry out exchange transactions with digital currency, its transfer and storage, as well as virtual asset service providers, should be subject to regulation, including the registration or licensing of such entities and supervision over them,” Rosfinmonitoring explained.
On July 31, 2020, Russia adopted a law “On digital currency.” Taking into account the requirements of various government agencies, it was amended on July 14, 2022. The law regulates all areas related to the circulation of digital assets: “relations arising from the issue, accounting and circulation of digital financial assets, the specifics of the operator of the information system in which the digital financial assets are issued and the operator of the exchange of digital financial assets, as well as relations arising from the circulation of digital currency in the Russian Federation.”
The next step in the development of cryptocurrencies in the country is the regulation of international payments made in digital assets. Alexei Moiseyev said: “Now we have a draft law already agreed with the central bank. In general, it describes how to buy a cryptocurrency, what you can do with it and how it can or cannot be used, primarily in cross-border payments.”
According to the official, all that remains is to decide on the infrastructure.
Since Russia is an energy giant and has no shortage of power capacity, mining on its territory is quite profitable. This is recognized at the state level, as well. In the autumn session of parliament, it is planned to adopt a law on cryptocurrency mining, in which it will be allowed in areas with a surplus of electric power.
Mining will be allowed in regions with the presence of hydroelectric and nuclear power plants, says co-founder of ENCRY Foundation Roman Nekrasov. In fact, large mining farms have been operating there for a long time.
Russia’s major exchanges are already actively developing software and infrastructure for the circulation of cryptocurrencies. The turbulent situation in the world has once again shown that digital assets are the best way out for countries seeking independence.