Russian Plans to Legalize Cross-Border Crypto Transactions by 2024
The Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, revealed in an interview with Russian newspaper Izvestia that Russia intends to legalize cross-border transactions with cryptocurrencies by the second half of 2024. The goal is to leverage the St. Petersburg Exchange platform for these transactions, and discussions are currently taking place.
Experimenting with Digital Currency among BRICS Nations
Aksakov also disclosed plans to experiment with the use of digital currency for mutual settlements between participating countries in the BRICS group from 2025-2026. The Russian government aims to pass a crypto regulation in 2024 as well.
Emphasizing Importance of Cryptocurrencies for International Payments
Aksakov emphasized the significance of using cryptocurrencies for international payments. The legislation is expected to go through its first reading in March and second reading in April. Initially planned for November 2023, the process was delayed due to coordination challenges among key institutions.
Crypto Taxation and Penalties
The proposed regulations will cover mining, cryptocurrency circulation, cross-border payments, and taxation. Penalties will be introduced for illegal cryptocurrency use. The Ministry of Finance’s suggestion of a 20% income tax on miners is being considered, although taxing income instead of profits is also under discussion.
Boosting Cross-Border Transactions with Crypto
The State Duma has expressed support for allowing miners to sell cryptocurrency as an export product, aiming to boost the crypto industry. This move is expected to enable businesses to legally conduct cross-border transactions with crypto by the latter half of 2024.
Optimism Amidst Challenges
Despite the challenges, Aksakov remains optimistic about the impending legislation, recognizing the growing adoption of cryptocurrencies by Russian companies for international payments. The comprehensive regulations represent a significant step towards establishing a regulated framework for cryptocurrencies in Russia, aligning with global trends in the digital asset space.
Hot Take: Russia’s Crypto Legislation Progresses Amidst Coordination Challenges
Russia is making strides in its plans to legalize cross-border transactions with cryptocurrencies by the second half of 2024. Despite facing coordination hurdles among key institutions, including the government and central bank, Chairman Anatoly Aksakov is optimistic about resolving these issues during January meetings. The comprehensive legislation aims to regulate mining, cryptocurrency circulation, cross-border payments, and taxation. It also includes penalties for illegal cryptocurrency use. The State Duma’s support for allowing miners to sell cryptocurrency as an export product is expected to boost the crypto industry. Overall, Russia’s progress in crypto legislation reflects its efforts to establish a regulated framework and align with global digital asset trends.
By
By
By
By