According to reports, the Bank of Russia, the nation’s central bank, has acknowledged that cross-border crypto transfers are unavoidable, given the current geopolitical situation.
According to a regional news agency TASS report, the Deputy Minister of Finance and the Russian central bank have agreed to legalize cryptocurrencies for cross-border payments.
Key Highlights:
- The introduction of legislation allowing the use of cryptocurrencies in international trade is forthcoming in Russia.
- The Bank of Russia and the Ministry of Finance reportedly agreed that in the current situation, “it is difficult to do without cross-border transactions in cryptocurrencies.”
- Even so, the required regulatory framework will need to be implemented.
“Currently, people open crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank which are required to comply with the requirements of anti-money laundering legislation, and first of all, of course, to know their client,” the deputy minister said.
Historical fact about crypto as payments in Russia
Lawmakers in Russia have long been against the concept of accepting cryptocurrency as payment. An effective crypto regulation called “On Digital Financial Assets” was approved by Russia in 2020, outlawing the usage of cryptocurrencies like Bitcoin (BTC) as payment methods. Since the Russian ruble is the only form of legal tender in the nation, the Bank of Russia has been cautious of the idea of cryptocurrency payments.
In Russia, using cryptocurrencies as payment first emerged in late 2021. Then, Russian President Vladimir Putin remarked that using cryptocurrency for trading energy resources like oil and gas was “still premature.”
Following Russia’s invasion of Ukraine, the situation appears to have shifted due to economic penalties from the West. The Minister of Industry and Trade stated in May that Russia would “sooner or later” authorize cryptocurrency payments.
