Financial authorities in Russia have begun working on a mechanism to facilitate the operation of cryptocurrencies for settlements with other nations under sanctions. The country’s central bank and finance ministry have agreed on a draft law to regulate cross-border crypto payments.
Regulators in Russia have moved to legalize the use of Cryptocurrency in foreign trade
Russian authorities intend to regulate the supply, distribution and various operations of digital assets, including international crypto payments, by the end of 2022. The Ministry of Finance, the Central Bank of Russia and the Rosfinmonitoring Agency have taken this task. The financial watchdog told the daily Izvestia.
“The activities of organizations that carry out digital currency exchange operations, its transfer and storage and providers of virtual assets services should be monitored, including the registration or authorization and control of these persons,” explained Rosfinmonitoring, and responsibilities should also include combating money laundering.
The current version of the “digital currency” bill, proposed by the Ministry of Finance earlier this year and updated with input from other authorities, provides a domestic infrastructure for crypto asset trading. Now Russian regulators have turned their attention to the settlement mechanism for cryptocurrency payments in foreign trade.
The Ministry of Finance and the Central Bank have agreed on legislation allowing cross-border crypto settlements.
This week, Deputy Finance Minister Alexey Moiseev announced that his department and the Bank of Russia have reached an agreement in principle on a new law that allows international payments in cryptocurrency.
In early September, the two institutions came to the conclusion that Russia “cannot do without cross-border crypto payments.” The government official was quoted by RIA Novosti news agency and business daily Kommersant as saying:
We now have an agreed account with the central bank. It generally describes how to access cryptocurrency, what can be done with it, and how it can or cannot be used, primarily in cross-border settlements.
At the same time, according to the RBC Crypto report, Moiseev admitted that the issue of “entering and exiting fiat” will be solved. Then experts should determine the minimum infrastructure that Russia should create to implement such cryptocurrency payments.
The Ministry of Finance and the Monetary Authority have agreed on a draft law regarding crypto-mining that will legally regulate its activity. The deputy minister pointed out that the question of whether miners should deposit the hatched digital coins in wallets in the Russian Federation or abroad has so far been decided for the second option.
Do you think Russia will legalize and regulate cross-border crypto payments by the end of the year? Tell us in the comments section below.
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