Russian Firms Have Already ‘Conducted Billions of Dollars Worth’ of Crypto Trade – Lawmaker

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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September 16, 2024

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A top Russian lawmaker has claimed that Russian firms have already used crypto to carry out “billions of dollars” worth of cross-border trade deals.

However, he said that it was “necessary to limit the number of organizations” that can use crypto as a settlement tool.

And the lawmaker claimed that new crypto regulations and a list of “authorized” crypto “participants” would be ready by “around” November.

Per the Russian media outlet RBC, the Chairman of the State Duma’s Committee on Financial Markets Anatoly Aksakov said that the Ministry of Finance and the Central Bank are ready to launch new legislation.

Russian Firms Want More Crypto Freedom

Aksakov, the chief architect of Russia’s fast-growing collection of crypto laws, said the ministry and the bank “are preparing to determine” who can join a new sandbox.

Firms included in the sandbox will be allowed to use crypto as a tool of payment in international settlements.

Aksakov said that the parties would finalize a “circle of participants” and roll out new “cryptocurrency trading” rules before the year is out.

Much of the talk appears to be revolving around crypto exchanges. Crypto exchanges remain completely unregulated in Russia.

The bank previously expressed a desire to ban them completely. However, its stance has changed on this matter as Russia has decided to legitimize its industrial crypto mining industry.

Russian firms also say they are struggling to do business with international partners due to Western sanctions.

Many firms have already begun using crypto in cross-border trade. But others are still waiting for Moscow’s approval. Some leaders say they want unchecked access to crypto markets.

The bank is most concerned about what should happen to the coins that trade firms and miners accumulate.

It wants Russian firms to liquidate the coins for fiat. But a burning question remains: Which platform should they use?

In recent months, senior government figures have suggested using the Saint Petersburg Currency Exchange and the Moscow Exchange’s platforms.

However, both have recently denied they have any plans to start crypto trading.

Aksakov suggested that banks could play a key role, and mentioned that some banking players “are already actively engaged” in crypto-related activities.

“It is important to protect the market as much as possible from unscrupulous participants. Because cryptocurrency is used to pay not only for the supply of necessary goods, but also to buy weapons and drugs.”

Anatoly Aksakov, Chairman of the Russian State Duma’s Committee on the Financial Markets

Pilot Must Come Before Wider Crypto Access, MP Insists

Aksakov said that the sandbox will remain an “experimental” zone under the Central Bank’s watchful eye.

Following extensive pilots, Russian regulators will then “understand how to regulate it better.”

After this, the government will steadily increase “the number of participants and trading platforms” allowed to handle crypto, he said.

The media outlet said that the ministry and the Central Bank have plans to “hold a discussion with market participants in the near future.”

They are keenest of all to explore the use of stablecoins “in international settlements.”

The bank appears especially keen, and thinks that fiat-pegged coins “may have advantages over traditional payment services in cross-border settlements.”

Aksakov has previously conceded that an unspecified number of Russian firms are already using crypto in place of fiat in cross-border trade.

Moscow appears to be turning a blind eye to these companies’ activities (or allowing them to continue) until its sandbox is fully operational.