Russia Can’t Do Without Cross-Border Crypto Payments, Consensus Reached – Finance Bitcoin News

Russia should legalize crypto payments in international settlements. This has been agreed by key government officials. The proposal has been gaining support in the past few months since Moscow’s decision to invade Ukraine was met with wave after wave of Western sanctions.

Russia Financial Authorities Look into Legalizing Cryptocurrency Pays Internationally

In the current conditions, “it is impossible to do without cross-border settlements in cryptocurrency,” Russia’s finance ministry and central bank have concluded after reconsidering their positions on the matter, Russian media reported. The institutions are obviously referring to the restrictions imposed over the conflict in Ukraine that have significantly limited Russia’s access to global finances.

Both financial regulators now believe that it’s necessary to legalize international settlements with cryptocurrencies, Deputy Finance Minister Alexei Moiseev revealed in an interview with the Russia-24 TV channel, quoted by the Tass news agency. This should be done soon, he believes.

Both institutions are at odds over regulation of bitcoin and digital currency in Russia. Minfin, the Ministry of Finance (Russia), has been pushing for legalization of some operations while the Bank of Russia proposed a blanket ban.

Moiseev said that these differences still exist. The high ranking official acknowledged that these differences remain. However, he pointed out how the Central Bank of Russia has changed its approach to crypto payments within the framework of foreign trade relations. This was in response to the changing situation. He elaborated further:

It is being rethought. We are rethinking it because the infrastructure we want to build is not flexible enough for cryptocurrencies to be used in cross-border settlements. This, however, must first be legalized.

According to the deputy finance minister, the aim is to allow Russians to use cryptocurrency for international payments on one hand and to control it so it can’t be used for money laundering or drug payment, as well as other illegal purposes.

Minfin suggests to people opening crypto wallets in foreign countries to be able to access wallets provided by CBR-supervised local entities. These will be obliged to comply with the country’s anti-money laundering and know-your-customer regulations, Moiseev emphasized.

In June, Bank of Russia Governor Elvira Nabiullina said that cryptocurrencies could be used for payments as long as they “don’t penetrate” Russia’s financial system. Commenting on Moiseev’s latest statements for RIA Novosti, the bank’s press service stressed the monetary authority and the finance ministry are not talking about legalizing crypto payment or exchange inside the country. Recently, Russian Prime Minister Mikhail Mishustin described digital assets as a “safe alternative” in foreign trade.

In this story, tags
Approach, Bank of Russia CBR Central Bank Conflict, Crypto Crypto payments Cryptocurrencies Cryptocurrencies Cryptocurrencies Finance Ministry Foreign Trade, International Settlements, Legalization Minfin Positions Regulations Restrictions Russia Sanctions Ukraine War

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Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image creditShutterstock. Pixabay. Wiki commons. Aleksandr Khmeliov

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