Russia’s Federal Tax Service (FTS) has weighed in on the country’s debate over cryptocurrency law with an unusually straightforward proposal: allowing Russian businesses to use digital currencies as a payment method when trading with foreign counterparts.
According to the local daily Izvestia, on April 20, the FTS provided formal comments on the draft crypto legislation created by the Ministry of Finance. According to the fiscal agency’s declarations, Russian enterprises should be allowed to use cryptocurrency for the following operations:
“To let corporate entities pay for goods and services according to foreign trade contracts and to receive revenue from foreign entities in digital currency.”
According to Izvestia, the revised draft contains a paragraph stating that the prohibition on using cryptocurrency as a payment method applies “in all circumstances where this legislation does not stipulate differently.”
Faced with the financial limits imposed on Russia, the FTS advised acting on this reservation to increase the payment choices available to Russian enterprises engaged in foreign trade. According to the FTS, businesses will be forced to buy and sell digital currencies through regulated crypto wallets and exchange platforms.
The Ministry of Finance characterized the problem as “somewhat support” in response to the FTS’ feedback letter, noting that it warrants more research and debate.
On April 8, the Russian Ministry of Finance finished the draft bill “On Digital Currency” (often known as the “crypto bill”) and presented it for approval to the Russian government.
Key Points to Note
- According to tax authorities, this might help expand trade with friendly states where cryptocurrencies are recognized as legal payment vehicles.
- The Finance Ministry showed some support for the concept but stated that it needed further research, discussion, and legislative regulation.
- According to tax suggestions, businesses would be compelled to buy cryptocurrencies for rubles on exchanges.
