New Russian Draft Law to Facilitate Transactions in Crypto

By Swati Kishore

As per the latest news reports from the Russian media, the world’s largest nation is preparing the draft of a law that aims to enable certain industries to conduct financial transactions in digital currencies. This move is seen as a major step towards accepting digital assets as a store of value and medium of exchange.

Russia’s Ministry of Economic Development is responsible for the draft of this particular law which will enable specialised entities to leverage crypto assets for transactions.

As per reports, firms working in the Blockchain and IT industries will be able to transact in cryptocurrencies if the law comes into force. The law is currently defined as ‘experimental’. It will be enforced in select geographical regions of Tatarstan or Kalingrad.

Antaoly Aksakov, the Chairman of the Parliamentary Financial Markets Committee, detailed on the law saying,

“The law on the regulatory sandbox, which I hope we’ll adopt during the spring [parliamentary] session, will allow either individual companies or a given industry to use crypto instruments in their economic turnover and business operations in certain regions.”

Interestingly, when enforced, the law will benefit the Russian market in two ways. Firstly, it would test the applicability of digital currencies and transactions in the wider market.

Secondly, through this law, Russia will be able to enable some Russian-origin companies in dealing with the foreign sanctions imposed upon them by the United States of America.

The news of this law comes few days after Russian Prime Minister, Dmitry Medvedev, proclaimed his support for the adoption of digital currencies.

Mevedev stated that cryptocurrencies cannot be ignored just because the market is facing a prolonged bear trend.

The Parliament of Russia, Duma, is already awaiting the reading of an array of crypto-related bills from last year.

Interestingly, with as much 13% of its population using cryptocurrencies, Russia is one of the prime markets for digital assets. Popular crypto exchanges like Exmo and Binance have their eyes set on the Russian crypto market.