Russia Legalizes Cryptocurrency Trading

The Central Bank of Russia is taking very important steps to legalize cryptocurrency trading.

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Introduction

In line with the instructions of the Russian President, the Central Bank of Russia has begun work on regulating investments in cryptocurrencies within certain frameworks and has submitted proposals to the government.

The Russian Central Bank is considering a three-year plan to allow certain RUZ investors (generally those with high trading volumes of at least $1.1 million and more) to trade cryptocurrencies.

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Cryptocurrencies Continue to Gain Adoption by Countries

It is known that Russia is working on a cryptocurrency ecosystem, despite individual crypto payments being banned throughout the country. The Central Bank of Russia has been known to allow cross-border payments with cryptocurrencies since at least 2022. The Russia-Ukraine war, embargoes and sanctions have been the most obvious examples of how the current global monetary system is harming Russia. In addition, Russian Finance Minister Anton Siluanov stated that Russia actively uses cryptocurrencies in foreign trade in accordance with the country's legislation by the end of 2024.

Efforts are being made to increase the transparency of the cryptocurrency market throughout the country. Standards are being introduced for cryptocurrency asset service providers and new opportunities are being expanded for investors.

The Central Bank of Russia emphasized that it will determine new regulatory requirements for financial institutions that want to invest in cryptocurrencies, taking into account the level and nature of their risks.

Conclusion

We can assume that this development is due to the fact that after the United States approved the use of Bitcoin and cryptocurrencies as reserves, Russia is also considering potentially allowing Russian companies to invest in cryptocurrencies, and the Central Bank of Russia is also determined to purchase Bitcoin and cryptocurrencies as reserve currencies.

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