According to reports, financial authorities in Russia are on the verge of reversing their position on legalizing cryptocurrency or digital assets for international trade.
The Bank of Russia, the transcontinental country’s central bank, has reportedly determined that crypto payments for cross-border transactions are inevitable due to the current geopolitical situation.
Historically, the Central Bank of Russia has opposed the idea of using cryptocurrency as a form of payment, but it has reassessed its approach on the issue and reportedly reached an agreement with the country’s finance minister to legalize digital assets for international trade payments, a local news outlet said. TASS reports.
“As far as the regulation of the cryptocurrency market is concerned, the different approaches have remained. But I can say that the central bank has also changed its mind [the approach]taking into account the fact that the situation has changed, and we are reconsidering it,” Russia’s Deputy Finance Minister told TASS.
“Because the infrastructure that we want to create is too rigid for the use of cryptocurrencies in cross-border transactions, which of course we have to legalize somehow first. On the one hand, give people the opportunity to do it, on the other hand, bring it under control so that there is no laundry, no drugs are paid for and so on,” the official added.
Despite this stance on using cryptocurrency as a means of payment, the Deputy Treasury Secretary also said they need to roll out their regulatory framework.
“Now people are opening crypto wallets outside of the Russian Federation. It is necessary for this to be possible in Russia, for it to be carried out by bodies supervised by the Central Bank, which are obliged to comply with the requirements of anti-money laundering laws, and first of all, of course, to know their client. “
The Central Bank of Russia said it is still opposed to legalizing cryptocurrency payments within Russia.
“It is important to emphasize that we are not talking about legalizing cryptocurrency as a means of payment on the territory of our country,” the Bank of Russia said in a statement to a local news outlet.
The idea of using cryptocurrencies as a means of payment in Russia emerged towards the end of 2021. At the time, President Vladimir Putin mentioned that it was “still premature” to use digital assets when trading energy products like gas and oil.
This latest news about Russia’s stance on crypto payments is an indication that the country has adapted to the changes, particularly the wave of economic sanctions from Western countries.
https://www.ibtimes.com.au/bank-russia-finance-ministry-legalize-crypto-payments-international-trade-1838179?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Bank of Russia, Ministry of Finance to legalize crypto payments in international trade