Russia has taken a major step to overcome the impact of international sanctions by legalizing the use of cryptocurrency in foreign trade. President Vladimir Putin approved the legal framework on Tuesday.
The new law allows companies based in Russia to make payments in cryptocurrencies for foreign trade transactions with their foreign partners. The move aims to create an alternative payment channel against Western financial restrictions.
The regulation goes beyond foreign trade alone. It also permits the use of cryptocurrencies in trading crypto assets obtained through mining, purchasing securities, and exercising other digital rights.
The responsibility for regulating and supervising the sector has been assigned to the Russian Central Bank. The government, in coordination with the Central Bank and the Federal Security Service (FSB), will be able to establish a special cryptocurrency trading regime to protect the constitutional order, economic interests, defense, and national security.