Russia’s crypto ambitions will face hard reality

Significance

On August 8, President Vladimir Putin signed two bills into law that modernise Russia’s legal and regulatory framework regarding cryptocurrencies. The first bill created the first-ever legal regime regulating crypto mining, which has until now remained a grey area. The second bill mandates that the Russian central bank set up infrastructure to enable cross-border cryptocurrency payments in Russia’s foreign trade.

Impacts

• Industrial-scale crypto mining is expected by Russian industry experts to generate USD700mn in tax revenue annually.
• According to Russia's Industrial Cryptocurrency Mining Association, crypto mining's growth could reach 40% in 2024.
• Digital financial assets, such as tokenised share certificates, will be used increasingly in cross-border settlements.