Russia's State Duma passed a cryptocurrency bill in its first reading on Wednesday, establishing a framework to allow digital assets in foreign trade settlements. The legislation seeks to regulate the circulation of crypto-assets within the country's economic sphere, according to a report by TASS featured in The Block.
The bill explicitly prohibits the use of cryptocurrencies for domestic payments. However, it provides a legal pathway for using these assets in foreign economic activities, according to the same report.
This regulatory shift coincides with a recovery in the broader digital asset market. Bitcoin rose above $78,000 early Wednesday morning, according to market data from The Block.
Analysts cited by The Block identified short squeezes and strong inflows into Bitcoin ETFs as the primary drivers behind the recent price rally. The broader cryptocurrency market saw roughly 2% price appreciation during the same period.
Market sentiment shifts
Investor sentiment appears to be rebounding from recent lows. The crypto Fear & Greed Index has risen to 33, moving out of the 'extreme fear' zone after sitting at just 8 at the beginning of April, according to The Block.
While the Russian legislative move focuses on trade, other sectors of the ecosystem face ongoing volatility. On the security front, an on-chain analyst reported via The Block that an exploiter of the Kelp DAO has laundered $80 million worth of ETH, primarily through THORChain.
Simultaneously, the Sui-based Volo Protocol suffered an exploit, though the team has pledged to absorb all resulting losses, according to reporting from The Block.
