Russia may soon legalize cross-border crypto payments
Russia is historically known for its hostility towards cryptocurrencies, but all this is about to change in a big way due to new realities. Most recently, the Russian Ministry of Finance mentioned that the use of cryptocurrencies for cross-border payments is a necessity. The ministry has put forward proposals in this regard.
The ministry and the central bank agree that crypto for cross-border settlements is necessary
A local news channel revealed the development on Monday. According to the report, the Russian Ministry of Finance and the Central Bank are now considering cryptocurrencies as a solution to their cross-border transaction situation. “It is impossible to do without cross-border cryptocurrency settlement,” both entities agreed.
The deputy finance minister, Aleksey Moiseev, relayed the ministry’s and the central bank’s thoughts to the public. According to Moiseev, the Ministry and the Central Bank of Russia are in the process of reviewing the strict legislation on digital assets.
The deputy minister mentioned that the financial authorities are “reconsidering” the current approach to cryptocurrencies. He noted that this reassessment is due to a change in “situation”.
Because the infrastructure we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which of course we must first of all legalize in one way or another,
he added.
Russia has more reason to turn to Crypto than most countries
Furthermore, Moiseev stated that the ministry and the central bank want to find a balance between opportunity and proper regulation. They want to give citizens the opportunity to use digital assets for cross-border settlements. Despite that, they are also looking to properly regulate it to address concerns about illicit financing and money laundering.
The ministry’s proposal will establish a regulatory framework to set up the necessary measures. In addition, as part of the adoption movement, citizens will have the opportunity to create digital assets in Russia. The central bank will supervise the entities that provide wallet creation services to citizens.
Russia has more reason to turn to cryptocurrencies than most other countries. Because of its invasion of Ukraine, the country has come under several economic sanctions from the West. Iran, which is facing similar sanctions from the US, has already taken steps to start paying for imports with crypto.
Despite the sanctions, Russia’s move towards crypto has been painfully slow. In July, Vladimir Putin, the President of Russia, banned the use of cryptocurrencies to pay for goods and services. The love-hate relationship the country has with crypto continues. Russia’s recent move comes at a time when the country is researching its digital ruble.
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