Russian government institutions are reported to support several proposals that will allow companies operating in the country to use cryptocurrencies. This comes after the government realized the potential of cryptocurrencies and blockchain technology.
Regulation Laws Drafted by Ministry of Economic Development
The Economy Ministry in Russia is reported to have prepared a law that is part of the proposals. The laws are meant to create regulatory sandboxes in several Russian regions. Some businesses that will be vetted by the panel and are already part of the IT sector, as well as the blockchain industry, will be allowed to use the digital assets to conduct financial transactions.
The regulatory regime experiments will be carried in selected parts of the vast country before they are fully launched. The lower house of Russia parliament, The State Duma, is reported to support the rollout of a pilot plan in the selected regions.
Regulation of cryptocurrencies is a top priority order that Financial Markets Committee is keen on seeing through as the digital currencies gain traction in the country. The establishment of regulatory sandboxes is one of the plans that the committee is hopeful will help regulate the use of cryptocurrencies.
The committee chairperson recently told the press that the law on regulatory sandbox would hopefully be approved during the upcoming parliamentary sessions in spring. He also went ahead to state that individual companies or a specific industry will be allowed to use various cryptocurrency instruments to enhance their operations and eventually their economic turnover.
At the time of writing, the regulation bill is still been discussed, and the specific corporate entities and regions that will be used to test the laws before they are fully launched are yet to be revealed. However, sources who are prying to the discussions have told us those businesses which use cross-cutting IT will be eligible to take part in the pilot plan.
Already, companies and local authorities based in regions such as Kaliningrad Oblast and the Tatarstan Republic have already expressed their desire to be part of the pilot program. Other potential candidates include Saint Petersburg, Moscow, Omsk Oblast, Primorsky Krai, and the Republic of Crimea.
Businesses Affected by Sanctions Can Use Digital Currencies
Russian companies that are already affected by the imposed sanctions are already in talks with the Russian Union of Industrialists and Entrepreneurs to explore the possibility of using digital currencies to circumvent sanctions. The economic and legal risks that are associated with cryptocurrencies can only be identified after a dozen companies are allowed to use cryptocurrencies.
Businesses that operate internationally but have been forced to change tactic due to restrictions and international sanctions stand to benefit from the crypto regulatory sandboxes. Get fresh cryptocurrency news that will help you make informed investment decisions in this industry here.