Russia brings law to advance crypto payments in international trade

Russian President Vladimir Putin has enacted a new law to create experimental legal frameworks aimed at advancing digital technologies, with a strong emphasis on cryptocurrencies in international trade. This legislation permits adjustments to existing laws to enable cryptocurrency transactions, particularly for cross-border trade, and designates the Bank of Russia to oversee pilot projects related to digital currencies.

• The law allows for altering or omitting specific legislative provisions to support cryptocurrency transactions, including in cross-border trade.
• Modifications can be made to key terms such as “currency values” and “electronic platforms,” and it also impacts regulations governing cryptocurrency trading platforms.
• The Bank of Russia is tasked with overseeing pilot projects, including using cryptocurrencies for foreign trade and developing digital currency trading within the national payment system.

The legislation mandates that any experimental legal regime involving digital currencies must receive approval from the Russian Finance Ministry, the Federal Security Service, and Rosfinmonitoring. Additionally, the law enables adjustments to rules concerning the deposit insurance system, the Bank of Russia’s payment system, and consumer loan dispute resolutions.

Furthermore, on the same day, Putin signed a separate bill regulating cryptocurrency mining in Russia, which is expected to come into effect later this year. This legislation marks a significant step in Russia’s approach to integrating cryptocurrencies into its financial system, with the first transactions under this regime potentially occurring by the end of the year.