Russian officials approve use of crypto for cross-border payments

Crypto Trading in Russia

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Russian officialsapprove use of crypto for cross-border payments

Reportedly,the Bank of Russia and the country's Ministry of Finance have reached anagreement to allow cross-border settlement in cryptocurrencies. According to areport Thursday by Russia-based publication Kommersant, Russia's DeputyFinance Minister Alexei Moiseev said the government department has agreed"overall" with the central bank a rule that allows residents to makecross-border payments using cryptocurrencies will allow sending.

The proposedpolicy change was reportedly aimed at allowing Russian citizens access to thedigital wallet. “[The policy] generally describes how to obtaincryptocurrency, what can be done with it, and whether or not it may or may notbe dealt with in cross-border settlements in the first place,” Russian newsagencies report. The central bank was discussing the issue of cross-bordercrypto payments with government officials.

However, theBank of Russia reportedly opposed allowing crypto exchanges to operatelegally and not accepting cryptocurrency as legal tender. Russia has had amixed relationship with crypto. In 2020, the country passed legislationprohibiting the use of cryptocurrencies including Bitcoin (BTC) forpayments.

PresidentVladimir Putin also signed into law a bill in July banning digital financialassets as forms of payment. In May, Trade Minister Denis Manturov suggestedthat Russia would legalize crypto payments "sooner or later".Since Russia's invasion of Ukraine in February, the government, businesses andsome individuals within the country have been the target of macroeconomicsanctions. on september 15, the United States Treasury Department added 22individuals and two Russia-based entities to its sanctions list, claiming theyhad furthered the government’s objectives in Ukraine.

The Russia Finance Ministry has reportedly reached an agreement to allow residents to send payments using cryptocurrencies. According to Kommersant, Alexei Moiseev said the government department has agreed "overall" with the central bank a rule that allows residents to make such cross-border payments.

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