Cryptocurrencies being used for international trade could become a reality in Russia, as the country is close to formalising legislation that will allow cross-border crypto payments.
TASS reported that Russia’s Ministry of Finance confirmed the imminent legalisation of crypto payments for international transactions, having outlined plans last February to make digital currencies legal in the country.
Alexey Moiseev, Deputy Minister of Finance, compounded the need for crypto’s legalisation describing it as ‘impossible’ to be without cross-border settlements in cryptocurrency, a sentiment shared with the Central Bank of Russia.
Russian lawmakers’ stance on crypto regulation has shifted in recent months after being previously pessimistic about its value, holding it in regard as an investment asset as opposed to a viable currency.
With a defined regulatory framework still yet to be introduced, Russia appears to be adamant that digital currencies are a necessary tool for the future when it comes to international trading and cross-border transactions.
Moiseev revealed the plans on Russia-24 TV: “As for the regulation of the cryptocurrency market, the difference in approaches has remained. But I can say that the Central Bank has also rethought (the approach), taking into account the fact that the situation has changed, and we are rethinking it.
“Because the infrastructure that we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which, of course, we must first of all legalise somehow. On the one hand, give people the opportunity to do it, on the other hand, put it under control so that there is no laundering, paying for drugs, and so on.”
Moiseev also delves into crypto adoption outside of Russia through the use of crypto wallets and crypto exchange platforms becoming more accessible.
He explained: “Now people open crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank, which are required to comply with the requirements of anti-money laundering legislation, and first of all, of course, to know their client.”
Russia’s move into crypto international trade will not impact their removal from SWIFT, as the country is still banned from the global banking network as a result of their invasion of Ukraine on 24 February.