Facing financial sanctions from Western regulators in the wake of the Russia-Ukraine war, Russia's transactions with its main trading partners such as Turkey, China, India and the United Arab Emirates (UAE) have slowed down significantly.
Trying to deal with these sanctions and negativities, Russia is trying to overcome them by paving the way for the use of Bitcoin (BTC) and cryptocurrencies in international payments.
According to Reuters, the cryptocurrency regulation is expected to be submitted to the Russian parliament on July 23.
The Russian Financial Monitoring Service stated that the country should accelerate infrastructure work for cryptocurrency payments, but should also carefully monitor crypto-related risks.
The new regulation, which is expected to be discussed in the Parliament on July 23, will allow the use of cryptocurrency transactions in international payments in order to maintain trade flows.
Yuri Çehançin, head of the supervisory body, said, “The use of cryptocurrencies is a need for companies, especially in cases where they need to enter the international market where sanction mechanisms are in question, and the problems encountered may not always be solved by standard methods.”
If the relevant cryptocurrency regulation is approved, the new legislation is not expected to change Russia's current ban on crypto trading within the country. Instead, it paves the way for cryptocurrencies to be used in international transactions.
While Russia's new initiative signals a potential change in its attitude towards cryptocurrencies, this proposed law in Russia, which is struggling with international sanctions, aims to facilitate international trade with the Russian economy.
*This is not investment advice.