Russia to Clarify its Stance on Crypto Cross-Border Payments in Late 2022
- Russia previously banned the use of cryptocurrencies for local payments, but allowed other activities such as mining and trading.
- Russia has become heavily dependent on digital assets since its war with Ukraine.
Russian Prime Minister Mikhail Mishustin has given the administration the official order to reach an agreement on crypto legislation in Russia by December 19, 2022. Mikhail urged the Duma and other local agencies to develop unified measures to control the issuance and use of digital currencies in the country. He also requested that regulators complete the regulations surrounding cryptocurrency mining and international exchanges of digital currencies.
The prime minister emphasized that the forthcoming draft be aligned with regulators at different levels including the Federal Tax Service, the Federal Security Service, the Russian Finance Ministry, and the central bank. Mikhail’s call for crypto policies affirms Russia’s seriousness in using cryptocurrency on an international scale.
Amidst its war with Ukraine, Russia has heavily relied on crypto assets to evade sanctions and economic bans. Financial agencies in the European country have implemented plans and given crypto assets the necesary recognition to be used for international payments.
The Bank of Russia and the finance ministry recently announced their decision to legalize cryptocurrencies to be used in cross-border payments. However, the Russian central bank is still averse to the authorization of local cryptocurrency exchanges and the use of cryptocurrencies as a form of payment, despite its willingness to permit international transactions.
There are allegedly numerous concerns about the viability of restricting domestic cryptocurrency exchanges while allowing cross-border transfers, especially as Russia has not yet developed a framework for such legislation.
Russia is fast becoming a crypto-friendly state and has unveiled several pro-crypto policies despite its previous stance. The Putin-led administration is yet to adopt a clear policy on crypto usage. The country restricted the use of cryptocurrency for local payments but allowed other activities such as mining and trading digital assets. The country is yet to authorize any local trading platform. However, Binance is allowed to conduct crypto activities in the region.