Russia Legalizes Crypto for Foreign Trade, Challenges Dollar Dominance
Russia has introduced a comprehensive legal framework to incorporate cryptocurrencies into its foreign trade system, addressing Western sanctions.
- The Ministry of Finance and the Central Bank will legalize crypto settlements for international trade, allowing transactions in Bitcoin and other digital assets.
- All crypto transactions for foreign trade will be regulated by the Central Bank, with AML and KYC compliance.
- Domestic crypto payments remain banned to protect the ruble, but Bitcoin- and stablecoin-based trade is enabled with Asian, Middle Eastern, and Latin American partners.
- This move aligns with Russia's dedollarization strategy and supports Bitcoin mining and liquidity through energy reserves.
- Analysts believe this could push BRICS nations to expand their blockchain-based settlement systems.
- Bitcoin surged past $108,500 after the announcement, seen as validation of its role as a global reserve asset.
Additionally, Russia is fast-tracking a Family Code amendment to classify cryptocurrency as marital property, further integrating digital assets into national law.
- The draft bill aims to prevent hidden crypto wealth during divorce proceedings.
- If implemented, Russia's crypto framework could offer a model for sanctioned or developing economies to bypass Western financial systems like SWIFT.
While volatility and regulatory risks exist, this integration marks a significant shift toward decentralized settlement networks in global finance.