This week Vladimir Putin signed a law allowing the use of digital financial assets (DFA) for foreign trade payments. The concept of DFA in Russia includes tokenized assets and financial instruments issued by central bank regulatory bodies. The central bank hopes to ensure that these assets do not start replacing the ruble, so the use of DFA for payments is prohibited. This situation still exists domestically, but they are looking for alternative solutions to avoid sanctions due to Russia's invasion of Ukraine. The legislation changes the definition of certain currency transactions to include digital rights such as DFA. In addition, the central bank can also establish conditions for the use of DFA for payments. The Russian central bank is a staunch supporter of anti-money laundering efforts. However, the Russian Federation Council stated in a statement that "due to the existing sanctions risk, federal law does not require information on the beneficial owners of persons issuing digital financial assets." The new law also allows for the transfer of insurance contracts, non-state pensions, and long-term savings through digital platforms. Typically, such assets are not transferable.

Elvira Nabiullina, the head of the Russian Central Bank, said that the Russian Central Bank is discussing the possibility of using central bank digital currency as a payment method in foreign trade. Nabiullina said that although Russia opposes the use of cryptocurrency payments in domestic transactions, the country is open to the idea of using cryptocurrency in foreign trade.

Anatoly Aksakov, Chairman of the Financial Market Committee of the Russian State Duma, stated that Russian domestic companies have already started overseas cryptocurrency business. Meanwhile, the Russian Central Bank hopes to accelerate its digital ruble project. The bank hopes that CBDC will provide an alternative solution for commercial and trade driven by the US dollar and cryptocurrency, and plans to launch it in 2025.

The Russian tax authorities will start using digital rubles for taxation from 2025, and banks will be given the power to prevent "suspicious" CBDC transactions. According to Klerk, the latest tax law amendment signed by Russian President Putin at the end of last year states that the Russian tax authorities will "switch to using digital rubles for taxation from 2025". The media added that the Ministry of Finance hopes to "start paying pensions and other social benefits with digital rubles". As part of the expanded pilot program, government agencies promise to actively adopt digital rubles in 2024.

According to a report by Glavportal, as cryptocurrency adoption increases and Russia prepares to launch its CBDC, more and more Russians are refusing cash and opting for "non-cash" payments. In the third quarter of 2023, non-cash turnover accounted for 64.2% of Russia's business, breaking the record of 63.3% set in the first quarter of the 2023 fiscal year. The authors of the study noted a +3.6% increase in the same period of the 2022 fiscal year. The Nenets Autonomous Okrug in the far north ranks first, with nearly 76% of payments made in non-cash form, followed closely by Yakutia and the Chechen Republic in Russia's Far East, with slightly over 75%.

Russia has been providing commercial electricity to Abkhazia since November. Local media reports that under this background, the authorities in Sukhumi have resumed their crackdown on cryptocurrency mining. The head of the capital, Beslan, emphasized that the authorities will tighten their means of combating illegal mining of cryptocurrency assets, and not only will the equipment be confiscated, but it will also be disposed of immediately. Astamur Haghush, the head of the Sukhumi Interior Ministry, said that inspections against mining have not stopped, and a total of 1,112 apartments, 712 households, and 405 basements have been inspected. Dzhambulat Arshba, the head of the SUES Energosbyt department, pointed out that by the end of this year, the number of electricity meters will reach about 13,000, and experts say this will cover more than 50% of users. Although cryptocurrency mining is currently prohibited, the regional authorities have approved special tariffs for miners in 2022.

The Central Bank of Russia stated that in the past 9 months, the number of financial pyramid schemes that raised funds or promoted digital asset investments with various cryptocurrencies has increased. Such projects account for 68% of the total number of pyramid schemes.

Russian Ministry of Trade has announced that it has developed a tool to help cryptocurrency miners evade Western sanctions. Legislators explain that the Ministry of Industry and Trade has developed a tool for industrial mining activities. Anton Tkachev, the First Deputy Chairman of the State Duma Committee on Information Policy, Information Technology and Communications, said that the tool will help Russian companies make cross-border payments. The lawmaker did not disclose details about the new tool, but said that Russian companies, including miners, may soon seek to increase their use of cryptocurrencies.

Coinbase, a crypto exchange, has been fined 1 million rubles ($11,000) by a Russian court for failing to localize Russian users' data within the country. This is part of a trend of Russia imposing fines on international technology companies for various violations, seen by some as an attempt to gain more control over the internet. Other companies that have been fined for similar reasons include Google, Apple, Spotify, WhatsApp, Airbnb, Zoom, and Telegram. Russia's internet and communications regulator, Roskomnadzor, had ordered foreign internet companies to localize Russian users' data by July 1, and around 600 companies had complied by that deadline.

The Central Bank of Russia has announced that it will collaborate with the United Arab Emirates (UAE) to create a joint payment system using digital rubles. The system will provide services for individuals and businesses and is expected to take one year to develop.