The Bank of Russia and the country’s Ministry of Finance have reportedly reached an agreement authorizing the use of cryptocurrencies for cross-border payments.
According to a report published Thursday by the Russian newspaper Kommersant, Alexei Moiseev, Russian Deputy Finance Minister, he has declared that the government department has reached an agreement “rough” with the Central Bank on a rule that would allow residents to send cross-border payments using cryptocurrencies. The proposed amendment to the rule was reportedly aimed at allowing Russian citizens to access digital wallets.
“The legislation generally describes how to buy cryptocurrencies, what you can do with them and how you can or can’t use them in cross-border payments”Moiseev said
Russian news agencies reported that the Central Bank discussed the issue of cross-border crypto payments with government officials. However, the Bank of Russia has reportedly spoken out against allowing crypto exchanges to operate legally and against cryptocurrencies as fiat money.
On September 5, Moiseev said:
“Now people are opening crypto wallets outside the Russian Federation, but it is necessary to do so in Russia with entities supervised by the Central Bank, which are required to comply with the AML and Know Your Customer requirements.”
Russia has had a mixed relationship with cryptocurrencies. In 2020, the country passed a law banning the use of cryptocurrencies, including Bitcoin (BTC), for payments. In July, President Vladimir Putin also signed a law banning digital financial assets as payments. In May, Denis Manturov, Minister of Commerce, stated that Russia will legalize crypto payments “sooner or later”.
Related: Survey: 72% of Russians say they have never bought Bitcoin
Since Russia’s invasion of Ukraine in February, the government, businesses and some individuals within the country have been subject to global economic sanctions. On September 15, the United States Department of the Treasury has added 22 people and two entities based in Russia to his list of sanctions, claiming they favored the Russian government’s goals in Ukraine.
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