Russia, In Sharp U-Turn, Legalizes Digital Currency

Beset by an array of Western sanctions over its invasion of Ukraine, Russia yesterday passed a law allowing for the use of crypto.

It’s a bold step but one that seemed inevitable, explained Mati Greenspan, CEO of Quantum Economics, a crypto market research firm.

“Previously, Russia would not want to allow that kind of transactional freedom to its citizens,” Greenspan. “But now we’re at the point that Bitcoin is used so often in everyday commerce that the opportunity cost for them not to allow it is simply too great,” he added (CNBC).

BTC, which on Tuesday afternoon sunk to as low as $65,500, had bobbed back above $66,000 by last evening. As of today 6:37 a.m. (EST), the largest crypto was about $66,070, per CoinGecko.

CoinDesk, citing Ria Novosti, Russia’s state-owned domestic news agency, confirms that not one but two crypto-related laws passed Russia’s lower house of the Federal Assembly, known as the State Duma. One law fully legalizes crypto mining in Russia starting in November.

The other law, described as experimental, allows, starting in September, Russia’s central bank to authorize select companies to conduct cross-border settlements via digital currency and to conduct exchange trading.