Russia All Out For Crypto Regulation, US Dollar Dominance Under Threat?

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As a seasoned crypto investor with roots stretching across continents, I find Russia’s gradual approach to crypto regulation intriguing. Having navigated the turbulent waters of various regulatory landscapes, I appreciate the cautious yet proactive stance taken by Russian authorities. The experimental legal regime for crypto payments is a step in the right direction, and I am eagerly awaiting the finalization of the necessary bylaws by November.

As an analyst, I am sharing that I’m closely following developments in Russia’s crypto regulation landscape. The process for regulating cryptocurrencies in the region has begun and is expected to reach completion within the next few months, around November. Notably, key stakeholders such as the Central Bank of Russia and the Ministry of Finance are actively working on drafting the necessary legislation from now until the scheduled deadline, under the guidance of Anatoly Aksakov, Chairman of the State Duma Financial Market Committee.

Russia Rolls Out Crypto Regulation Gradually

Starting from the first day of this month, a law allowing for crypto payments in international trade transactions and internal exchange trading under an experimental legal system has become active. Yet, it lacks comprehensive regulations, such as bylaws, to set guidelines for cross-border cryptocurrency transfers.

Russia’s financial authorities will see that all these processes are finalized by November.

Alongside drafting cryptocurrency regulations and bylaws, the Central Bank and Ministry of Finance plan to identify the group of people and businesses participating in the initial phase of this process. This group will primarily consist of credit institutions, banks, and possibly other relevant entities.

According to Aksakov, these entities are intended to provide insights into the workings of this market. Additionally, they should aid in the authorities’ comprehension of how to govern it effectively. Over time, more individuals may be included in this process.

The Threat to US Dollar

Although implementing regulations for cryptocurrencies, Russia is determined to prevent these assets from falling into the wrong hands due to their adaptability. They understand both the potential benefits and the risks associated with this asset class.

Moreover, Russia currently has no intention of completely transitioning from their physical currency, the Ruble, to cryptocurrencies. According to the head of the State Duma Financial Market Committee, its use will be limited to foreign trade transactions, while it will not be adopted as a medium of exchange within Russia.

This action aligns with the main objective of the BRICS Group, a collective of influential global economies. The member nations aim to counterbalance the influence of the US Dollar. It’s important to mention that Russia was one of the original founders of this alliance.

For quite some time, the BRICS Group has been working towards creating an alternative currency option for international transactions instead of the US Dollar. They’ve been exploring digital assets and other financial instruments as potential solutions for a while. Most recently, Russia suggested developing a Chinese yuan-backed stablecoin within the BRICS alliance to strengthen its de-dollarization initiatives.

 

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2024-09-14 20:27