Russian Lawmakers Pass Bill Legalizing Bitcoin Mining, Crypto Payments for International Trade

The Russian State Duma has passed a bill legalizing Bitcoin mining and allowing crypto payments for international trade, marking a significant development in Russia's stance on digital assets. The bill, which is expected to take effect on September 1 pending final approval, received overwhelming support with 404 votes in favor.

This legislation aims to mitigate the challenges faced by Russian banks under regulatory constraints and international sanctions, which have disrupted trade relations with key partners like China, India, the UAE, and Turkey. The new law establishes a regulatory framework to oversee crypto mining, ensuring compliance with tax regulations and preventing illicit operations. It authorizes Bitcoin mining under the supervision of the government and the Bank of Russia, bringing mining activities into the legal fold.

Additionally, the bill allows the sale of mined crypto without using Russian information infrastructure, exempting these transactions from domestic currency regulation laws. However, the use of cryptocurrencies for domestic payments remains prohibited. The legislation also bans crypto advertising to control the spread of digital currency use within Russia.

This move signifies a notable shift in Russia’s approach to digital assets, aiming to enhance trade relations and challenge global regulatory norms. Moreover, Russia is considering the official legalization of stablecoins for international transactions to facilitate cross-border payments amid ongoing sanctions. The central bank is actively discussing proposals to allow the use of these stable crypto-assets, which are pegged to stable currencies or assets like the US dollar or gold, making them less volatile than other cryptocurrencies.

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