The Russian Prime Minister urges crypto regulation

The Prime Minister of Russia has given instruction to the government regarding cryptocurrency regulation in the Russia. Mikhail Mishustin has officially requested that consensus is reached related to legislation in the digital space by December 19, 2022.

In the instruction, Mishustin has officially requested that the State Duma and other authorities in the government coordinate a plan and policies to regulate digital currencies in Russia, as well as setting up regulations for cryptocurrency mining and international transactions. As part of the regulation, plans should be coordinated with the Russian Finance Ministry, the country’s central bank, the Federal Tax Service and the country’s security service, according to the Prime Minister.

Russian cryptocurrency use

This urge from the Prime Minister comes following a growing potential for nationals and citizens to use cryptocurrencies and digital currencies as part of cross-border payments and import transactions. Just recently, the Deputy Finance Minister announced that the Bank of Russia would be legalising cryptocurrencies for cross-border payments. However, it is worth noting that the bank remains averse for cryptocurrency exchanges to hold unregulated services in the country and for businesses to accept cryptocurrencies as a payments method.

The need for regulation of cryptocurrency as a cross-border payment comes in the context of sanctions and restrictions against Russia. Mishustin noted that the financial system currently in place requires adjustment to continue operating under the current global-economic conditions.

As it stands, Russia’s relationship with cryptocurrency is divided as it undertakes a cross-border payments system but sits with a ban on local cryptocurrency use and payments. How this will play out will be answered in how the regulation is put in place. As per Mishustin’s instruction, these regulations should be developed over the course of the next year – with a call for International cryptocurrency transactions before the end of the year and for domestic crypto regulation before the end of March 2023.

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