Russia is actively working on developing comprehensive crypto regulations in the region with plans to finalize them by November. The country has already begun the process, led by Anatoly Aksakov, Chairman of the State Duma Financial Market Committee, who has mentioned that the Central Bank and Ministry of Finance will collaborate to draft the necessary by-laws within the coming months.
In a recent development, a new law allowing the use of crypto payments in foreign trade settlements and exchange trading under an experimental legal regime has been enacted. However, full regulation, including the establishment of rules for cross-border crypto payments, is still required and will be completed by November by Russian financial authorities.
Alongside formulating crypto regulations and by-laws, the Central Bank and Ministry of Finance will select participants for the initial phase of the regulatory process, including credit institutions and banks. These entities will play a crucial role in understanding the market mechanism and assisting authorities in devising appropriate regulations, with plans to expand the participant base over time.
Despite the pro-crypto regulatory stance, Russia is cautious about potential misuse of digital assets and has clarified that cryptocurrencies will not replace the Ruble as the primary currency for domestic transactions. The focus remains on using cryptocurrencies for foreign trading activities, aligning with the broader goal of the BRICS Group to challenge the dominance of the US dollar in international settlements. As one of the founding members of the BRICS Group, Russia has been exploring alternatives to the US dollar for cross-border transactions, including the potential launch of a Chinese yuan-pegged BRICS stablecoin to support de-dollarization efforts.