Yes To Cryptocurrency

Despite the debates between the Central Bank and the Ministry of Finance of the Russian Federation on whether to ban or to further regulate cryptocurrency in Russia, the latest version of the Ministry of Finance draft law of May 27 features the article that allows to use digital currencies to perform foreign trade transactions for companies and entrepreneurs. 

Looking back to February 18, 2022: the Central Bank of Russia presented a draft law on banning cryptocurrency in Russia to the State Duma. In its turn, the Ministry of Finance presented an alternative draft law on regulating transactions with digital assets and conducted public hearing. The Central Bank management presented its argument – cryptocurrencies are highly speculative tools, and compared them to Ponzi schemes, legalisation of which could lead to losing investments into these high-risk financial instruments due to their high volatility and market value drop. 

These risks are relevant for business as well – it could mitigate them by using high-level resources and professional personnel. During public hearings of draft laws presentations and sessions of the Expert Council under the Moscow City Commissioner for Entrepreneurs’ Rights Tatiana Mineeva, Criminal Defense Firm experts have repeatedly pointed out and justified the risks for business in case the Central Bank’s draft law on banning investments into cryptocurrency in Russia will be adopted. 

Given the current lay of the land of foreign trade restrictions, the proposal of the Ministry of Finance to use cryptocurrency for foreign trade transactions significantly increases the chances for its draft law to pass in the State Duma.

To conclude, the current crisis of interstate and trade relations requires the creation of a payments network alternative to the SWIFT and CHIPS in international transactions to neutralize the risks of disconnection. This fairly intensified projects on using private digital (crypto) currencies and creating establishing state cryptocurrencies as means of payment in foreign trade transactions before the introduction of the official "cryptoruble". However, this increases allied risks of crypto assets and funds embezzlement using such assets, while the protection of rights and compensation for damages for such crimes require professional engagement. 

If you have any concerns regarding crypto assets crimes, feel free to consult the professionals of Criminal Defense Firm.