Russia is moving ahead with its bitcoin legalization program, setting a definitive date for when BTC will made legal tender in the country. Russia faced a barrage of sanctions after the nation attacked and tried to invade the neighboring Ukraine.
Anatoly Aksakov, Chairman of the State Duma Financial Market Committee was quoted stating that they plan to make legal the cross border payments using cryptocurrencies as early as the first half of 2024
“We will meet with the relevant parties again in January and discuss the regulation of cryptocurrencies.
Because the cryptocurrency market in Russia is quite large. Major players involved in the mining and circulation of cryptocurrencies want this regulated; They are ready to pay taxes.
Therefore, I expect cryptocurrency legislation to become law in the first half of 2024.”
According to the Russian Newspaper Izvestia, the proposed regulations include penalties for the illegal use of cryptos, such as money laundering and funding criminal and terrorist activities. Cryptocurrency will be ingrained in Russia’s economic and financial system, spanning circulation, cross-border transactions, and even taxation.
The adoption of BTC as a legal tender in Russia is set to happen in March or April 2024. However, discussions for the same will take place in January.
Aksakov discussed the importance of Bitcoin payments and other cryptos in fostering and improving international payments during the interview.
As of the time of the interview, major crypto players in Russia are in support of the regulation and do not have a problem paying taxes on their cryptocurrency revenues.
This development comes just a couple of weeks before the potential approval of a Bitcoin ETF on January 10, 2024. The approval of a Bitcoin ETF could further strengthen Russia’s position on the global financial map if they are already underway with legalizing BTC.