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The Putin government is trying to introduce new regulations for utilizing cryptocurrency in Russia. The country’s financial authority is working on new crypto regulation draft bills that will be introduced in parliament by the end of 2022. But the Central Bank of Russia is still opposed to legalizing digital transactions.
Olga Skorobogatova, the deputy chairman of the central bank, stated that the proposal basically stands for three main objectives: to develop taxation and eliminate tax arbitrage; improve exchange platforms; and regulate smart contracts.
As per the reports, the financial authority was examining Russia’s private entities’ applications that are trying hard to get a legal license to introduce and circulate crypto assets in the nation. “We have not changed our position on the use of private cryptocurrencies in settlements because it is unclear who and how is responsible, they are opaque, and they carry high volatility risks.”
In February 2022, the Bank of Russia stated that it would ban the trading and mining of cryptocurrency in the nation. The organization believed that there was a lack of security in digital currency, which could jeopardize Russia’s financial stability.
“I hope that, in the best-case scenario, it could be passed in the spring session,” finance minister Siluanov stated in February. He further stated that the monetary authority proposed a team to identify crypto traders that could separate the “white market from the gray market.”
In the recent war with Ukraine, Russia faced huge trouble in its trade with other nations. So in September, the government entities decided to legalize cryptocurrency in Russia to overcome the trade barriers. Popular analysts believed that introducing new cryptocurrency regulations would help Russia overcome U.S sanctions against the country.
“We are rethinking it. Because the infrastructure that we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements.”
Recently, Russia partnered with China to introduce a new theme called gold-backed currency that may help to replace the US traditional currency in the upcoming years. Russia is attempting to replace the circulation of US dollars in its country as a result of sanctions imposed on it for forcibly invading Ukraine.
“In essence, Beijing and Moscow are seeking to build their own sphere of influence and a unit of currency within that sphere, in effect inoculating themselves from the threat of US sanctions.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
