Tue. Sep 26th, 2023

In the latest development, Russia has finally given a green signal to the use of crypto assets in cross-border payments. On Thursday, September 22, the Bank of Russia and the Ministry of Finance reached an agreement for the cross-border use of cryptocurrencies. Russia’s local news publication Kommersant quoted the country’s Deputy Finance Minister Alexei Moiseev as saying:

Now we have a bill in this part already agreed with the Central Bank in general… In general, it describes how to acquire cryptocurrencies, what can be done with them and how you can or cannot cross-settle with them in the first place. border settlements.

The current rule will also allow Russian residents to send payments across the border using digital assets. The proposed policy in particular seeks to allow Russian citizens to gain access to digital wallets. For the past few weeks, the Bank of Russia had been discussing the issue of cross-border crypto payments with its government officials. However, he had been opposed to cryptocurrency exchanges operating legally without accepting the digital assets as legal tender.

Ensuring strong regulatory measures

Earlier this month, Moiseev said that the Russian government’s financial bloc had proposed “too rigid” an infrastructure for the use of cryptocurrencies. But Moiseev had backed legalizing the use of digital assets for cross-border deals. The Vice Minister of Finance also noted that they will ensure that proper regulations are in place to prevent the illicit use of cryptocurrencies. He further added:

On the one hand, to give people the opportunity to do it, on the other hand, to put it under control so that there is no laundering, payment of drugs, etc.Now people are opening crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank, which are obliged to comply with the requirements of anti-money laundering legislation, and first of all, of course, know your client . .

Russia’s mixed relations with cryptocurrencies

Russia has had a rather mixed relationship with digital assets in recent years. In 2020, Russia sought to ban payments in Bitcoin and other crypto assets. Russian President Vladimir Putin himself signed a bill banning the use of digital assets. However, in May this year, Russian Trade Minister Denis Manturov said that they would legalize crypto payments sooner or later. Russia’s recent familiarity with digital assets comes as the country faces significant sanctions for its invasion of Ukraine this year. As a result, Russia has been cut off from the SWIFT financial system used throughout the world in global trade. Therefore, leveraging cryptocurrencies could be a means of mitigating the impact of sanctions.

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By Farwa Raza

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