On the 24th of July, reports came out stating that the Russian Parliament approves a bill legalizing the trading and mining of crypto. This agreement is still subject to authorization from the federation before it becomes a law.
Meanwhile, this is not a new legislation, as the bill came into light several years ago. Nonetheless, this event remains a significant achievement in the journey towards crypto adoption.
Considering its significances, Tectum will examine the intricacies of the crypto trading and mining approval from the Russian State Duma. Furthermore, we will explain why this is the perfect opportunity to use SoftNote for cryptocurrency transactions and payments.
After many years since its first passage, the Russian Duma passes a bill legalizing the use of cryptocurrencies for trading and mining. The new legislation received overwhelming support, with almost 90% of parliament members voting in support. According to reports, this new law will help to address Russia’s trade relation challenges with numerous other countries.
For as long as memory serves, Russia has been subject to various economic sanctions. This has crippled the nation’s economy and significantly impacted its ability to trade with countries like China, India, the United Arab Emirates, and Turkey. Local banks within the territories of these longstanding partners have also become cautious for fear of western pressure.
The Russian Parliament believes that cryptocurrency transactions will help to improve the Russian economy. As a result, this law only permits the use of blockchain token for international money transfers.
Surprisingly, Russia does not permit the use of cryptocurrencies for local transfers. In addition, cryptocurrency companies and exchanges cannot advertise their products or services.
More so, the bill will only recognize the use of stablecoins for global payments. Furthermore, Russia’s Finance Ministry is also proposing permitting traditional exchanges to enable select investors to trade digital assets.
On the other hand, this new law will oversee crypto mining activities, ensure compliance with tax regulations, and prevent illicit operations. Russia intends to bring crypto mining from the shadows and make it mainstream. While domestic cryptocurrency trading is prohibited, miners can still sell their proceed under a separate law.
Regardless of when the federation accepts the bill, the Russian Parliament approves that crypto that the trading and mining law will take effect from the 1st of September. It remains to be seen how the government will curtail crypto usage after this approval.
Cryptocurrency adoption in Russia is nothing new, as many of the country’s residents are already trading and sending cryptocurrencies underground. In fact, the government is drawing from the people’s ease of doing business to overcome Western sanctions. Nonetheless, this new legislation opens a new chapter amongst the country’s populace.
Although people will be able to send cryptocurrencies to and from abroad, they still have to deal with slow transactions and expensive gas fees. Well, that is, if they choose to transfer blockchain tokens through the standard process.
On the other hand, they can use Tectum SoftNote, a blockchain FinTech solution that fosters cheap and instant transactions. SoftNote is a product built on Tectum – the fastest layer-1 blockchain, and enables people to send cryptocurrencies through our T12 network. Unlike your regular blockchain token transfer, individuals only need to pay 0.5-1% in gas fees.
SoftNote works perfectly with USDT and other stablecoins, making it perfect for international crypto transfer. With the approval only a month away, Russians can take full advantage of this opportunity by creating a SoftNote account. The process is effortless and takes less than 1 minute to complete.
Another benefit of SoftNote is that it protect user’s privacy during transactions. No one can ascertain the details of your wallet through the transaction information on the block explorer. This perfectly aligns with the Russian government’s law that prevents the use of Russia’s information infrastructure.
Interested individuals can also learn more about this product by reading SoftNote 101 – an extensive guide on how to use this seamless financial solution.
