On July 30th, the Government of Russia passed 2 laws to legalize the virtual currency mining and pave way for the Central bank to use crypto currency for international payments. This law has been passed by the State of Dumma, the lower house of the Russian parliament, for the legal entities and entrepreneurs.
The war between Ukraine and Russia had made enough sanctions on the Russian economy. The various international sanctions has isolated Russian companies from the global dollar system and forced the Moscow Exchange to stop trading in the U.S dollas and Euros. According to the existing rules, the use of digital currency payments is prohibited in Russia. However, the new laws does not lift the existing ban nor the advertisements of such services shall remain still banned. This legalization becomes essential for Russia who is being disconnected from the SWIFT network and international transaction capacity for two years.
The legislation comes into force in september. Thus elevating 2 goals- facilitating payments in business and to mitigate sanctions on the Russian economy. Ms. Elviare Nabiullina, the Governor the Central Bank of Russia, indicated that crypto payments could be conducted to facilitate and maintain capital flow and use of the cross border payments. It is also exploring the developments of the digital version of its national currency, the ‘Ruble’ by around July 2025.
