In what could be a unique step towards the sanction and acceptance of cryptocurrencies as a medium of exchange, Russia is presently preparing a draft law which, when brought into force, will allow certain industries to conduct financial transactions using cryptocurrencies and other digital assets.
As reported by the Russian media, the law being drafted by Russia’s Ministry of Economic Development will allow certain entities in fields such as IT and those working with blockchain technology to utilize digital assets for any transaction. The law is said to be experimental in nature, to be applied to select ‘pilot’ regions, possibly Kalingrad or Tatarstan.
In the words of the Chairman, Parliamentary Financial Markets Committee, Anatoly Aksakov:
“The law on the regulatory sandbox, which I hope we’ll adopt during the spring [parliamentary] session, will allow either individual companies or a given industry to use crypto instruments in their economic turnover and business operations in certain regions.”
The draft law, if brought into force, will have two-fold benefits to the Russian market in the immediate future. For starters, this law would allow checking for the wider viability of cryptocurrency and digital currency transactions. Secondly, by allowing certain entities to trade in these, Russia will be relieving some of the pressure on Russian companies with an international presence which has been dealing with the foreign sanctions imposed by the United States of America.
The move comes days after the Russian PM came out in support for the wider use of cryptocurrencies by stating that a falling market is no reason to ‘bury’ cryptocurrencies. Russia also happens to have a significant percentage of people who use cryptocurrencies (13%) and has thus become a prospective target for exchanges such as Binance and Exmo.
The Russian parliament, Duma already awaits a formal reading of a stack of bills from last year, all of which relate to the regulation of cryptocurrency.