Key government institutions have agreed that Russia should legalize crypto payments for international settlements. The idea has gained support in the past few months since Moscow’s decision to invade Ukraine was met with a wave of Western sanctions.
Financial authorities in Russia are considering legalizing international cryptocurrency payments
In the current situation, “it is impossible to do without cross-border settlements in cryptocurrency,” the Russian media reported that the Ministry of Finance and the Central Bank of Russia came to the conclusion after reconsidering their position on the issue. The institutions cited sanctions imposed over the conflict in Ukraine as Russia’s most severe restriction on global financial access.
Both financial regulators now believe it is necessary to legalize international settlements in cryptocurrencies, Deputy Finance Minister Alexei Moiseev said in an interview with Russia-24 TV channel, quoted by Tass news agency. He thinks this should happen soon.
The two institutions have long clashed over the control of digital currencies such as bitcoin in Russia, with the Ministry of Finance (MinFin) proposing to legalize various transactions with them and the Bank of Russia previously proposing a blanket ban. this year.
Moiseev acknowledges that those differences exist. But the senior official said that taking into account the changed situation, the Central Bank of Russia (CBR) has revised its approach to crypto payments in foreign trade relations. He explained.
We are rethinking it. Because the infrastructure we plan to create is very rigid for the use of cryptocurrencies in cross-border settlements, we will of course need to legitimize it in some way first.
The Deputy Minister of Finance stated that the goal would be to give Russians the opportunity to use cryptocurrency in international payments, on the one hand, and on the other, to put it under control so that there is no opportunity to use counterfeit money. For drug or other legal purposes.
Minfin is now proposing to allow people who open crypto wallets abroad to have wallets with local entities that are regulated by the CBR. They also have an obligation to comply with the country’s anti-money laundering and know-your-customer regulations, Moiseev emphasized.
In June, the governor of the Bank of Russia, Elvira Nabilina, said that cryptocurrencies can be used for payments “as long as they do not enter” the Russian financial system. Commenting on Moiseev’s latest statements to RIA Novosti, the bank’s press service emphasized that the monetary authority and the Ministry of Finance are not talking about the legality of crypto payments or exchanges in the country. Recently, Russian Prime Minister Mikhail Mishustin described digital assets as a “safe option” in foreign trade.
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