According to a senator working on crypto rules, digital financial assets such as cryptocurrency can enable Russia access the global financial market despite Western sanctions. According to the source, the government is capable of establishing domestic crypto exchanges and should encourage mining.
Russia can set up its own cryptocurrency exchanges, according to a deputy minister.
According to a member of the State Duma, Russia’s lower house of parliament, the crypto sector is an area where imposing limits on Russia is tough. Alexander Yakubovsky told Parliamentskaya Gazeta that the country has the means to establish its own cryptocurrency exchanges and employ alternative payment schemes and platforms.
The congressman confirmed that global trading platforms like Binance are being pressured to support Russian Federation sanctions. Simultaneously, he stated that professionals from the world’s largest crypto exchange are helping legislators in Russia’s efforts to create a legislative framework for digital assets.
The proposed legislation, according to Yakubovsky, a member of the Duma working group tasked with proposing complete crypto regulations, can give Russia with access to the financial industry, which western governments are currently attempting to restrict for Moscow. This will be determined by how effective the new structure is, he explained, adding:
Furthermore, competent development of digital financial assets will mitigate the negative effects of the country’s sanctions.
Russian crypto miners will not leave the global mining market, according to the official. Last year, Russia ranked third in terms of mining capacity, which he described as a “enormous quantity of power,” according to Yakubovsky. In addition, the country has excess generating capacity, which he believes should be utilised.
When asked about the differences between the Central Bank of Russia, which advocated a blanket crypto ban in January, and the Finance Ministry, which prefers stringent regulation, the deputy noted that the situation has changed. The Minfin’s stance is supported by the majority of government entities, and a report released in early March suggested that Russian authorities were moving forward with legalisation measures.
After the law “On Digital Financial Assets” entered into effect last year, lawmakers and specialists from several agencies have been working to remedy the regulatory holes that remained. In February, Russia’s Ministry of Finance filed to the federal government a draught law titled “On Digital Currency,” which intends to legalise crypto investments while confirming the country’s ban on the use of cryptocurrencies for payments.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.