Crypto Assets Can Help Russia Return to Global Financial Market, Lawmaker Says – Regulation Bitcoin News

According to a crypto regulation expert, Russia could use digital assets such as cryptocurrency to gain access the world’s financial market. Official believes that the country can set up crypto exchanges in its own country and should therefore support mining.

Russia Can Establish Own Cryptocurrency Exchanges, Deputy Insists

The crypto space is an area where it’s difficult to impose restrictions on Russia, a member of the State Duma, the lower house of Russian parliament, has recently pointed out. Alexander Yakubovsky spoke to Parlamentskaya Gazeta and stressed that Russia is able to establish its own cryptocurrency exchanges, as well to use alternate payment systems and platforms.

He acknowledged that Binance and other global trading platforms are being pressured to support Russian Federation sanctions. At the same time, he noted that experts from the world’s leading crypto exchange are advising legislators in their efforts to design a regulatory framework for digital assets in Russia.

Yakubovsky was a member in the Duma group charged to create comprehensive crypto regulations. Yakubovsky stated that Russia could have financial access through the new legislation, something western governments are trying to block for Moscow. The effectiveness of the new structure will determine this, Yakubovsky explained.

Additionally, sanctions can be minimized by developing digital assets that are competently developed.

Official also stated that Russian crypto-miners would not leave the global mining marketplace. Yakubovsky reminded the publication that last year Russia ranked third in terms of mining capacity, which he described as an “enormous amount of power.” The country has a surplus of generating capacity as well and in his opinion it would be unwise not to use it.

The deputy was asked to comment on the differences between the Central Bank of Russia (which proposed a blanket ban on crypto currency in January) and the Finance Ministry (which favors strict regulation), but he said the situation had changed. Most other government bodies support the Minfin’s approach, and a report in early March revealed that Russian authorities were proceeding with legalization efforts.

Lawmakers and experts from various departments have been working to fill the regulatory gaps remaining after the law “On Digital Financial Assets” went into force last year. In February, the Ministry of Finance submitted a draft law to the federal government, “On Digital Currency,” which aims to legalize crypto investments while confirming a ban on the use of cryptocurrencies for payments in Russia.

Is Russia likely to be able use cryptocurrencies as a way to bypass western sanctions? Comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.