Russia Begins Development of Mechanism for International Cryptocurrency Payments

Russian financial authorities have begun working on mechanisms to facilitate the use of cryptocurrencies for reconciliation with other countries amid sanctions. have already agreed to a bill to regulate

Russian regulators are moving towards legalizing the use of cryptocurrencies in foreign trade

Russian authorities plan to regulate the issuance, circulation, and various operations of digital assets, including international cryptocurrency payments, by the end of 2022. The financial watchdog told the daily Izvestia.

Rosfinmonitoring explains that “digital currency, its transfer and storage, and the activities of organizations that carry out exchange operations with providers of virtual asset services are subject to regulation, including the registration or licensing of such persons and their supervision. must be,” he added. Responsibility should also include fighting money laundering.

The current version of the bill “On Digital Currencies”, submitted earlier this year by the Ministry of Finance and revised with input from other authorities, provides for the establishment of a domestic infrastructure for cryptocurrency trading. Russian regulators are currently turning their attention to settlement mechanisms for cryptocurrency payments in foreign trade.

Treasury Department and Central Bank Agree on Law to Allow Cross-Border Crypto Payments

Deputy Finance Minister Alexei Moiseyev revealed this week that his department and the Bank of Russia have reached an agreement in principle on a new law authorizing international payments in cryptocurrencies.

In early September, two agencies concluded that Russia “cannot live without cross-border cryptocurrency payments” in the face of rising sanctions, quoted by RIA Novosti news agency and economic daily Kommersant. A senior government official said:

Currently, a bill has already been agreed with the central bank. In the first place, in cross-border settlement, it roughly explains how to acquire virtual currency, what you can do, whether you can use it or not.

At the same time, according to RBC Crypto’s report, Moiseev admitted that the issue of “in and out of fiat currency” has not been resolved. Experts then need to determine the minimum infrastructure that Russia needs to create to be able to implement such cryptocurrency payments.

The Ministry of Finance and financial authorities also agreed on a bill on cryptocurrency mining that legally defines the activity. The deputy minister said the issue of whether miners should deposit minted digital coins into 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 cryptocurrency payments by the end of the year? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tasev, a tech-savvy journalist from Eastern Europe, loves what Hitchens says. In addition to cryptocurrencies, blockchain and fintech, international politics and economics are sources of inspiration.