The U.S. pressed sanctions against Russia for its role in invading and waging war against its neighboring country Ukraine. The sanctions made it harder for the nation to do business with foreign powers. However, Russian President Vladimir Putin countered the sanctions through BRICS, convincing other nations to ditch the U.S. dollar and promote native currencies. The power move made Russian companies actively use cryptocurrencies to settle cross-border transactions without any use of fiat currency.
Therefore, the U.S. sanctions remained counterproductive as nations are looking to end reliance on the dollar. Despite being in the driver’s seat, the USD could soon take the back seat when BRICS launch a new currency. The next BRICS summit will be held in South Africa and Russia, along with four other nations will combinedly decide on a new tender for international trade.
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BRICS: Legislatures in Russia to Vote on Forming Crypto Laws
Considering that Russian companies are using cryptocurrencies to settle trade, Russian legislatures will soon vote on forming four cryptocurrency laws. The State Duma, the lower house of the Russian parliament plans to vote on the laws in July, according to Anatoly Aksakov, chairman of the parliamentary Financial Market Committee.
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Cryptocurrency transactions are yet to be regulated by the Russian authorities. The digital assets help the country to fight sanctions pressed by the Western powers. The bills aim to regulate cryptocurrency mining, cross-border crypto payments, taxation of digital assets, and liability for illegal use.
“Now we have come to the point where four bills are in the stage of practical adoption. We may adopt all the laws in the spring session,” said Aksakov at the International Legal Forum.
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Aksakov emphasized that the authorities will take into account the opinions of market participants regarding tax rules and structure. “Norms applicable to Digital Financial Assets (DFA) will be taken into account since this is a similar instrument,” he said.