Russia has big plans to regulate cryptocurrencies in the region by November. The process has already begun, but will be finalized in the coming months. According to Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, the Central Bank of Russia and the Ministry of Finance will prepare the necessary regulations by the scheduled date.
Russia gradually introduces regulation on cryptocurrencies
Earlier this month, the law allowing the use of crypto payments in foreign trade settlements and stock exchange transactions under an experimental legal regime came into force. However, comprehensive regulation, including statutes, was needed to establish the rules for cross-border crypto payments.
Russian financial authorities will ensure that all these processes are finalized by November.
In addition to preparing regulations and statutes related to cryptocurrencies, the Central Bank and the Ministry of Finance will consider the circle of people and organizations that will take part in the first stage of the process. Participants will include credit institutions and banks.
According to Aksakov, these entities will allow to “probe” the mechanism of this market. They will also help the authorities to better understand how to regulate it. Over time, the number of participants in the process will increase.
The threat to the US dollar
Despite the measures to regulate cryptocurrencies, Russia is keen to ensure that these assets do not fall into the wrong hands. The country has recognized the versatility of this asset class and how it could also be misused.
Russia also has no plans to completely replace its fiat currency, the ruble, with cryptocurrencies. The chairman of the State Duma Committee on Financial Markets said that the ruble would be used only for business activities abroad and not for payments in Russia.
This move is part of the primary goal of the BRICS group, a bloc of countries that are among the world’s largest economies. The member countries of this group are trying to challenge the dominance of the dollar. It is worth noting that Russia is one of the founding members of this bloc.
The BRICS group has long been trying to develop an alternative to the US dollar for cross-border settlements. They have been exploring the use of digital assets and other asset classes for some time now. Last month, Russia hinted that it was considering creating a BRICS stablecoin pegged to the Chinese yuan to accelerate de-dollarization efforts.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and innovations aimed at fostering the mainstream acceptance and global integration of this emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media outlets and sites. Benjamin Godfrey is passionate about sports and agriculture. Follow him on TwitterLinkedin
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