Russia wants to legalize cryptocurrencies but not stablecoins


Russia enacted a bill to authorize the use and trading of cryptocurrencies, with an unexpected ban on stablecoins.

The first steps towards cryptocurrencies and stablecoins

Since the beginning of the conflict between Russia and Ukraine, cryptocurrencies have played a significant role on both sides of the conflict.

While Ukraine has been lining its pockets with crypto funds for food, ammunition, clothing, and medicine, Moscow has been able to stop international sanctions and start new Bitcoin trade with some African countries.

A month ago, the Kremlin’s deputy energy minister, Evgeny Grabchak, expressed the opinion that it would be appropriate to legalize Bitcoin mining in Mother Russia.

The ability to mine Bitcoin offers a significant strategic advantage to a country so large that it is already rich in raw materials, especially after China banned this type of practice.

Cryptocurrencies are about to be legalized but with caveats 

A draft of a new law aimed at regulating cryptocurrencies recently landed on the desk of Kommersant, who wasted no time in spreading the news.

According to the Russian news agency, the Russian Ministry of Finance has drafted a bill not only to authorize the use of digital currencies, the cryptographic system and Bitcoin mining, but also to indicate the thresholds for access to the figures of the investors. and merchants (rumored to be 30/100 million for the latter) and finally unexpectedly banned stablecoins.

This last restriction highlights, even more, the careful analysis that is done in Russia on the subject, preferring to investigate the instrument before making it usable.

The restrictions also include details on who can and cannot register as a broker and/or operator of digital trading platforms. To be recognized as a stock trader it seems that a minimum requirement of 30 million rubles will be introduced, while for trading platform operators the figure rises to 100 million rubles.

In his recent article on the legalization of cryptocurrencies, he commented:

“According to the bill, the digital currency can be accepted ‘as a means of payment that is not the monetary unit of the Russian Federation’, as well as an investment, while there should be no obligated entity in connection with it.”

Basically, it sets the tone for the grand opening, but for the time being locks down stablecoins unless further development occurs in the future (Tether, Luna, etc.).

Therefore, Russia could become a very interesting center for the circulation of Bitcoin within its territory and throughout the world.

The gas situation 

In recent weeks, the Russian president had dictated that Russian gas, which supplies a large amount of gas to European countries (40% of Italy’s needs, more than 50% of Germany’s needs, etc.), should be paid exclusively in rubles.

The news shocked the markets, which would have helped a foreign currency to consolidate in international trade at the expense of the dollar and would have worked as an operation to contain economic sanctions against Moscow.

Within days, Putin corrected this by declaring that the process would be gradual and only for countries deemed hostile on a list drawn up by the country.

The latest installment in the “Russian Gasoline” series was the real bomb, as the Kremlin arranged for gasoline to be paid for in Bitcoin, establishing the largest Bitcoin trading operation in recent history.

There is definitely a crypto appetite in Russia and the phenomenon does not appear to be a temporary bubble, we will be keeping an eye on any further steps in the case.