Russian financial authorities have started work to create a system that will allow the use of cryptocurrency for payments with countries other than Russia. The country’s central bank and finance ministry have already agreed on a draft law regulating cross-border crypto payments.
Russia’s regulators are moving towards legalizing cryptocurrency for foreign trade
Russian authorities plan to regulate the circulation and issuance of digital assets by 2022. This includes international crypto payments. Rosfinmonitoring, Russia’s central bank, and Ministry of Finance took on this task, according to Izvestia.
“The activities of organizations that will carry out exchange operations with digital currency, its transfer and storage, and providers of virtual asset services should be subject to regulation, including registration or licensing of such persons and their supervision,” Rosfinmonitoring explained and added that their responsibilities should also include combating money laundering.
The current version of the bill “On Digital Currency,” put forward by the finance ministry earlier this year and revised with input from other authorities, provides for the establishment of domestic infrastructure for crypto asset trading. Russian regulators now focus on the foreign exchange settlement mechanism.
Finance Ministry and Central Bank Sign a Law Allowing Cross-Border Blockchain Settlements
Alexey Moiseev (Deputy Minister of Finance) announced that his bank and Bank of Russia had reached an in-principle deal on new legislation for international payment in cryptocurrency.
Earlier in September, the two institutions concluded that Russia “can’t do without cross-border crypto payments” in the face of mounting sanctions. According to Kommersant business newspaper, RIA Novosti and the official government statement:
The central bank has already approved the bill. This bill generally describes the process of acquiring cryptocurrency and how that can be accomplished. It also explains how cross-border settlements can use it.
At the same time, according to a report by RBC Crypto, Moiseev admitted that the issue with “entry and exit to fiat” remains to be resolved. Next, experts will need to establish the minimal infrastructure Russia requires to accept cryptocurrency payments.
A draft law regarding crypto mining has been approved by the finance ministry as well as the monetary authorities. According to the deputy minister, the issue of whether crypto miners can credit digital currency minted abroad or in Russia has been settled in favour of the second option.
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