To help define the future of the digital financial asset (DFA) market in the Russian Federation, Prime Minister Mikhail Mishustin has given the Ministry of Finance instructions to collaborate with the Bank of Russia to create and submit practical proposals by the 1st of December. 

Legislative action is required to bring the situation under control, and the Central Bank and the Ministry of Finance need to work together with other authorities to present a cohesive front on this subject.

Russian Government Is Taking Steps Toward Regulating Cryptocurrencies

RBC Crypto said that the order originated from the highest levels of the Russian government after a debate on the monetary framework of the nation. A senior official emphasized the significance of DFAs in the current environment, noting that they make it possible for Russia to make payments for both its imports and exports smoothly.

The “Strategy for the Development of the Financial Market until 2030” of Russia has to be revised, and the tasks of adjusting it have been delegated to the country’s Ministry of Finance and Central Bank, respectively. It is necessary to modify the document to consider both the directions President Putin issued and the present geopolitical context, as outlined by Mishustin.

Vladimir Putin highlighted Russia’s potential as a currency minting destination in January of this year when he called on government institutions to agree on crypto law. In August, Mikhail Mishustin described digital assets as a “safe alternative” to traditional currencies for use in international transactions.

Cryptocurrency Is Thought to Combat Russia’s Economic Restrictions

The Russian government’s Treasury and Monetary Authority is tasked with drafting new laws to regulate the issuance and circulation of digital currency in the nation by the 19th of December in conjunction with Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service.

The ministry introduced the draft legislation titled “On Digital Currency” in February. In addition to making the use of digital assets in international settlements lawful, it will also provide restrictions for mining cryptocurrencies, a developing sector in Russia, due to the country’s abundant supply of electricity. 

Additionally, there must be recommendations on the best way to distribute cash using the digital ruble.

Moscow now views the digital currency produced by the Russian central bank and decentralized cryptocurrencies as potential tools that may alleviate the adverse effect of sanctions on the Russian economy and international business. 

This week, Ivan Chebeskov, the director of the Financial Stability Department at the Ministry of Finance, was quoted as saying that he expects cross-border cryptocurrency transactions to begin as early as next year.