Russian financial authorities have started working on a mechanism to facilitate the use of cryptocurrencies for settlements with other countries under the sanctions. The country’s central bank and finance ministry have already agreed on a draft law regulating cross-border crypto payments.
Russian regulators are moving towards legalizing the use of cryptocurrency in foreign trade
Russian authorities intend to regulate the issuance, circulation and various operations with digital assets, including international crypto payments, by the end of 2022. The Ministry of Finance, the Central Bank of Russia and the The Rosfinmonitoring agency took on this task, the financial watchdog told Izvestia daily.
“The activities of organizations that will engage in foreign exchange transactions with digital currency, its transfer and storage, and virtual asset service providers should be subject to regulation, including registration or licensing to these people and their supervision,” explained Rosfinmonitoring and added that their responsibilities should also include the fight against money laundering.
The current version of the “On Digital Currency” bill, introduced by the Ministry of Finance earlier this year and revised with the contribution of other authorities, provides for the establishment of a national infrastructure for trading crypto assets. . Now, Russian regulators have turned their attention to the mechanism for settling cryptocurrency payments in foreign trade.
The Ministry of Finance and the Central Bank Agree on a Law Allowing Cross-Border Crypto Settlements
This week, Deputy Finance Minister Alexey Moiseev disclosed that his department and the Bank of Russia had reached an agreement in principle on new legislation allowing international cryptocurrency payments.
Earlier in September, the two institutions concluded that Russia “cannot do without cross-border crypto payments” in the face of mounting sanctions. Quoted by the RIA Novosti news agency and the business daily Kommersant, the government official said:
Now we have a bill already agreed with the central bank. It usually describes how to acquire cryptocurrency, what can be done with it, and how it may or may not be used, primarily in cross-border settlements.
At the same time, according to a report by RBC Crypto, Moiseev admitted that the issue of “fiat in and out” remains to be resolved. Next, experts will have to determine the minimum infrastructure that Russia needs to create in order to be able to implement such cryptocurrency payments.
The Ministry of Finance and the monetary authority have also agreed on a bill concerning crypto mining which will legally define the activity. The Deputy Minister noted that the question of whether miners should credit minted digital coins to wallets in the Russian Federation or abroad has so far been decided in favor of 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.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
