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Top Russian Lawmaker Joins Calls For Legalizing International Crypto Payments

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Top Russian Lawmaker Joins Calls For Legalizing International Crypto Payments

A high-ranking member of the Russian parliament has urged for the adoption of a relevant legal framework to properly regulate cross-border crypto payments. His proposal comes after key regulators in Moscow said that Russia needs to allow the use of cryptocurrencies in foreign trade, now that it’s having to deal with serious financial restrictions.

Financial Market Committee Chair Suggests Adopting Legislation for Russia’s Crypto Payments

Anatoly Aksakov, head of the Financial Market Committee at the State Duma, considers it necessary to provide cross-border settlements in cryptocurrency with a regulatory framework. The lower house of Russian parliament is expected to review crypto-related draft legislation this fall, including a new bill “On Digital Currency,” and Aksakov has been an active participant in these efforts.

The influential member of the lower house of Russian parliament issued the call after earlier this week the Russian finance ministry and central bank agreed that for the country “it is impossible to do without cross-border settlements in cryptocurrency,” in the current circumstances. Russia has been facing mounting Western sanctions over its invasion of Ukraine.

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Quoted by the business daily Kommersant and the RIA Novosti news agency, Aksakov emphasized that determining the legal boundaries for the use of cryptocurrencies in cross-border settlements is an important task. He also marked as a high priority the need to ensure that those who enter this market are identified by authorities.

“First of all, this requires a legislative basis for a legal and transparent process. At the same time, it is worth remembering the ban on cryptocurrencies as a means of payment in the Russian Federation,” the deputy explained.

Despite the consensus with the Ministry of Finance on international crypto payments, the Central Bank of Russia also made it clear that the development is not about legalizing cryptocurrency payment or exchange transactions inside the country. In January, the monetary authority proposed a blanket ban on domestic crypto activities including issuing, trading, and mining.

Stablecoins have been discussed as another option for sanctioned Russia. Deputy Finance Minister Alexey Moiseev unveiled that Moscow is working with the governments of several “friendly countries” on the establishment of clearing platforms for international stablecoin settlements as part of efforts to avoid using major fiat currencies such as the U.S. dollar and the euro.

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Aksakov, conflict, cross-border payments, Crypto, crypto payments, Cryptocurrencies, Cryptocurrency, international payments, international settlements, lawmaker, legal framework, legalization, Regulation, restrictions, Russia, russian, Sanctions, Stablecoins, Ukraine, War

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Do you think Russia will manage to significantly substitute Western fiat money with cryptocurrencies or stablecoins in trade with partners? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Russia Said To Allow Crypto Mining In Regions With Hydroelectric And Nuclear Power

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Russia Said To Allow Crypto Mining In Regions With Hydroelectric And Nuclear Power

Cryptocurrency mining should be allowed in areas with excess energy and prohibited in those that experience deficits, according to Russian officials preparing to legalize it. An expert from the crypto industry has recently marked the regions where Moscow is likely to authorize mining and the ones where it will probably ban the extraction of digital currencies.

Expert Lists Russian Regions Most Suitable for Crypto Mining and Those Expecting Ban

The Central Bank of Russia and the Ministry of Finance recently agreed on legislation designed to regulate the mining of cryptocurrency that should be adopted by the end of this year. Lawmakers working to finalize it have indicated that the industrial activity should be permitted only in parts of the vast country that can produce more electricity than they need.

One of them, the Chairman of the parliamentary Financial Market Committee Anatoly Aksakov, also said that the energy-intensive process should be banned in other areas facing power shortages. The deputy assured that the respective bill will be filed with the State Duma in the near future and also called for the simultaneous regulation of mining and cryptocurrencies.

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The idea to authorize the minting of digital coins only in regions with a steady surplus in electricity generation is not new. A proposal in the same direction was made by the Russian Ministry of Economic Development in February, when the department also suggested introducing “acceptable” electricity rates for miners.

Roman Nekrasov, co-founder of ENCRY Foundation, which represents IT companies providing services in the field of blockchain and tech innovations, has shared with RBC Crypto his expectations about which Russian regions are most likely to be allowed to host crypto mining operations. He also listed those where miners will hardly be welcome.

Mining will be permitted in regions with hydroelectric and nuclear power plants, he told the crypto news outlet, which have been already populated with cryptocurrency farms for several years now. These include Irkutsk Oblast and Krasnoyarsk Krai, which have many hydroelectric power plants, as well as Tver, Saratov, Smolensk, and Leningrad regions, with their nuclear power plants.

The minting of digital currencies will probably be banned in the capital Moscow and the adjacent Moscow Oblast, Belgorod Oblast, and Krasnodar Krai, which have historically been energy-deficient, Nekrasov explained. He also expects the crackdown on illegal mining facilities in Dagestan to intensify. The Russian republic is another region with insufficient electricity supply where mining has spread as a popular source of income amid high unemployment.

The crypto industry expert also thinks Russian authorities could allow the extraction of cryptocurrencies in Karelia. However, this could happen under certain conditions such as requiring mining enterprises to support the construction of small hydropower plants, Roman Nekrasov remarked. Karelia was listed among the most popular crypto mining destinations in Russia in study released earlier this year.

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Aksakov, authorization, ban, bill, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, draft law, Law, legalization, Legislation, Miners, mining, mining farms, Regulation, Russia, russian

Do you expect Russia to allow mining only in its energy-rich regions? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Russia, Finance Ministry Agree On Crypto Mining Regulation, Law Expected Soon

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Bank Of Russia, Finance Ministry Agree On Crypto Mining Regulation, Law Expected Soon

Major government institutions in Moscow, the central bank and the finance ministry, have aligned their positions on the regulation of cryptocurrency mining in the Russian Federation. The respective bill will soon be filed with the State Duma, a high-ranking member of the house unveiled.

Financial Authorities Reach Consensus on How to Regulate Mining of Digital Coins in Russia

The Central Bank of Russia (CBR) and the Ministry of Finance (Minfin) have adopted a joint position on the regulation of crypto mining. The bitcoin-related activity has been expanding in the energy-rich nation, both as a profitable industry and as a source of additional income for many Russians.

Anatoly Aksakov, chair of the parliamentary Financial Market Committee, announced during the Kazan Digital Week forum that draft legislation introducing rules for the sector will soon be submitted to the lower house of Russian parliament, the State Duma. Quoted by RBC Crypto, he said:

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In the near future, the bill will appear in the State Duma, we will work to pass it faster.

The Russian lawmaker also gave his own take on the matter. Aksakov believes that cryptocurrency mining should be allowed only in regions with abundant energy resources and prohibited in those that experience shortages.

Earlier in September, Prime Minister Mikhail Mishustin asked the CBR, Minfin, Rosfinmonitoring, Russia’s financial watchdog, the Federal Tax Service, and the Federal Security Service to elaborate a common position on draft federal laws regulating the issuance and circulation of digital currencies, including their mining and use in international settlements.

The head of the Russian government also ordered the Ministry of Finance, with the participation of the Bank of Russia, to submit consensus proposals for the development of the market for digital financial assets (DFAs), including the application of decentralized technologies, by Dec. 1.

The two regulators will have to update the Strategy for the Development of the Russian Financial Market Until 2030. The document should be revised taking into account President Vladimir Putin’s instructions and the current geopolitical situation, Mishustin stated on Sept. 13. He also emphasized that under the current conditions, the employment of DFAs will contribute to ensuring uninterrupted payments for imports and exports.

Russian authorities have been discussing the regulation of cryptocurrencies and related activities for quite some time, with the CBR and Minfin taking almost opposite positions until recently. While the central bank proposed a blanket ban, the department has favored legalization. However, the two regulators recently agreed that Russia would need cross-border crypto payments to deal with the pressure exerted by Western restrictions on its foreign trade.

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The majority of officials in Moscow also share the view that the Russian Federation should exploit its competitive advantages in the field of crypto mining, which were highlighted by the Russian president, too. Many regions in the vast country offer both low-cost energy and cool climate. At the same time, Russian crypto miners have also been hit by sanctions imposed over Moscow’s invasion of Ukraine.

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Aksakov, CBR, Central Bank, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, cryptocurrency mining, DFAs, Digital Assets, finance ministry, financial market, legalization, Miners, mining, Regulation, Russia, russian

Do you think Russia will legalize other crypto-related activities besides mining? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Proposal To Set Up Russian Crypto Exchange Circulated In Moscow

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Proposal To Set Up Russian Crypto Exchange Circulated In Moscow

Russia may establish a dedicated exchange to carry out cryptocurrency transactions locally, a high-ranking member of the State Duma has suggested. The new platform can be hosted by the Moscow Exchange, according to Anatoly Aksakov, head of the parliamentary financial market committee.

Russian Authorities Mull Creating Domestic Cryptocurrency Exchange

A crypto trading platform may be established at the Moscow Exchange (MOEX), according to a statement by Anatoly Aksakov, who chairs the Financial Market Committee at the State Duma, the lower house of Russian parliament.

The lawmaker, who has been involved in the ongoing efforts to adopt a comprehensive regulatory framework for cryptocurrencies, believes that a Russian digital asset exchange will be in the best position to process crypto transactions in the country.

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MOEX is the largest Russian exchange, which facilitates trading of equities, bonds, derivatives, precious metals and operates Russia’s forex market, central securities depository and the country’s largest clearing service provider.

The exchange suspended trading following the Russian invasion of Ukraine on Feb. 24. It also became a target of western sanctions imposed on Russia over military conflict. MOEX opened almost a month later, on March 21, but only for state bonds.

“Of course, there should be a crypto exchange, created according to the strict requirements of the central bank. I assume this will be a division of the Moscow Exchange,” Aksakov was quoted by Prime news agency as stating during a press conference.

He elaborated that this will ensure the Russian crypto trading platform will operate “within the framework of a respected organization with great traditions,” which is accustomed to actively interacting with the Central Bank of Russia, allowing it to “best of all cope with the task of carrying out operations with cryptocurrency.”

Russian government institutions have been working on new legislation to expand the rules for the country’s crypto market, with most of them opposing a proposal by the Bank of Russia for a wide-ranging ban on crypto-related activities, including trading.

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Lawmakers are expected to review and adopt a new bill “On Digital Currency” this fall, which should regulate cryptocurrency operations. In a recent interview, Aksakov indicated this is likely to be a “tough” law, despite the monetary authority in Moscow softening its stance on certain aspects, including crypto payments as a tool for international settlements.

Do you think Russia will establish a crypto trading platform under the Moscow Exchange? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Stanley Kalvan

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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