Russia’s State Duma Passes Crypto Bill; Will Allow Crypto Trading

Russia will allow crypto trading…

In another positive piece of news for the cryptocurrency industry, Russia has passed its crypto bill. The passing of this bill by the State Duma has been a long time coming. It was introduced in the year 2018 and Russian lawmakers had been discussing it for the past two years. During these two years, there had been a lot of conflicting reports as to which direction they would go.

Some reports had stated earlier that Russia could totally ban cryptocurrencies. Other reports had stated that they are looking at favourable regulations. Now, the passing of this bill has provided much-needed clarity for the local crypto industry there. It seems like Russia will allow crypto trading and the issuance of stablecoins in the country.

A Legal Status

In Russia, until now, cryptocurrencies were not recognized at all. This means that they had no legal definition whatsoever. This is important as these definitions help interpret laws and situations relating to any industry. The new bill titled “On Digital Financial Assets” now provides legal status to cryptocurrencies. This was done after the final third reading on the bill by the State Duma on July 22.

As per reports, the bill will be adopted from January 1, 2021. The most exciting part is that it legitimizes cryptocurrency trading in Russia. So, the long-standing fears of a blanket ban can now be put to rest. However, cryptos like Bitcoin will be prohibited to be used as a payment method. So, unlike other countries, you won’t be able to pay for your coffee in crypto.

Even though this is a landmark bill on cryptos, it doesn’t actually present the actual regulations. It merely gives legal recognition to the industry, providing a foundation for further crypto legislation. Another bill titled “On Digital Currency” will have more detailed regulations that pertain to different crypto activities. It is expected to be passed during the autumn season.

This is why the local crypto industry in Russia is still cautious. That’s because the next bill could change some things. It could even contain some surprises according to industry experts. However, it is still expected that there won’t be a blanket ban.

Regulators Clarify Stance For Russia to allow crypto trading

Speaking on the current bill, Anatoly Aksakov cleared some confusion. He is a member of the State Duma and is an influential person behind Russia’s crypto laws. He stated that the bill will allow local crypto businesses to issue stablecoins. These will be pegged to a fiat currency.

Also, Russians will be allowed to exchange these stablecoins for other assets. These include cryptoassets that are issued abroad. So, this part makes it clear that trading activities might be fully allowed in the country. Another important detail is that Russia’s central bank could become the main regulator for cryptocurrencies. It will be authorized to monitor crypto activities in the country which also includes the issuance of cryptoassets.