Is Russia Ready to Allow Cross-Border Crypto Transactions?

Russia’s Finance Ministry and the Bank of Russia have agreed on a bill that will allow Russian citizens to engage in cross-border transactions using cryptocurrencies.

About the proposal

Russian media outlet Kommersant is listed Alexey Moiseev, Deputy Minister of Finance of Russia, who spoke at a gathering at the XIX International Banking Forum “Bans of Russia – XXI Century” taking place in Kazan, Russia. The Event attended by various government departments, including the central bank and market regulators.

“We now have a bill in this part that has already been agreed with the Central Bank in its entirety… It generally describes how to get cryptocurrency, what can be done with it and how it can or cannot be settled in the first place. -border settlements” Minister Moiseev.

The proposed bill would allow Russian citizens to access digital wallets in order to engage in cross-border transactions.

Russia feels left out

Minister Moiseev admitted that the growing adoption of cryptocurrencies around the world contributed to the proposal. He had declare yourself earlier this month, the central bank’s approach makes the infrastructure “too rigid” to coexist with cryptocurrencies.

“Now people are opening crypto wallets outside of the Russian Federation. It is necessary that this can be done in Russia, done by entities supervised by the Central Bank…” Moiseev added while stressing the need for local crypto services so that citizens are not dependent on foreign platforms.

Change of attitude

Until recently, Russia’s general sentiment towards cryptocurrencies was rather hostile, with calls for a ban from lawmakers and regulators.

At the beginning of the year, the Bank of Russia called to ban the issuance of cryptocurrencies in Russia, as well as their use as investments.

Bill followed was submitted by the Ministry of Finance regarding the regulation of cryptocurrencies, which prohibited their use as a means of payment in the country.

However, things have improved lately. In June this year, Elvira Nabiullina, the governor of the central bank, declare yourself that cryptocurrencies could be used for international settlements as long as they are not traded domestically.

Last month, Russian Prime Minister Mikhail Mishustin is expressed how cryptocurrencies could play a role as an alternative means of payment for imports and exports; Prime Minister Mishustin stressed the need for intensive development of innovative technologies.

Russian authorities are beginning to realize that cryptocurrency adoption is inevitable. It has become more of a necessity given the current geopolitical environment, especially in the wake of the war in Ukraine which has led to numerous sanctions being imposed on Russia.

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