Russian Officials Approved the Use of Cryptocurrency for Cross-border Payments

According to different sources, the bank of Russia and the country’s ministry of finance have reached an agreement that will allow cross-border cryptocurrency settlements.

As per Deputy Finance Minister Moiseev Alexei, the policy explains ” How to acquire cryptocurrency and what can be done with it, and it’s use in cross-border settlements”.

The report published by Russia- based publication Kommersant, Russia Deputy Finance Minister Alexei Moiseev stated that “the government department has mutually agreed with the central government over a rule that would allow residents to send cross-border payments using cryptocurrency”. The policy is purposely built to help Russian nationals to enjoy their digital wallets.

According to the report Moiseev said, the issues discussed in the policy focus on,” how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with it in the first place in cross-border settlements”.

According to the Russian News Agencies, the central bank reportedly spoke with government officials about the issues the government can face in cross-border crypto payments. However, the bank of Russia, on the other hand, disagreed with allowing crypto exchanges to function legally and not accepting them as legal tender.

Russian Deputy Finance Minister Moiseev Alexei, on September 5 stated that ” Now the people are opening crypto wallets outside the Russian Federation, it is necessary to do this in Russia with entities supervised by the central bank, which are required to comply with Anti-Money Laundering and Know Your Customer requirements.”

Cryptocurrency has a complicated history with Russia. In the year 2020, the country passed legislation prohibiting the use of cryptocurrencies such as Bitcoin (BTC) for payments.

In July, President Vladimir Putin also signed legislation prohibiting the use of digital financial assets as payment. Denis Manturov, Russia’s Trade Minister, suggested in May that crypto payments would be legalized “sooner or later.”

According to the survey report: 72% of Russian says that they have never dealt with Bitcoin

Since Russia’s invasion of Ukraine in February, the country’s government, businesses, and individuals have been subjected to severe economic sanctions.

Whereas, on September 15, the US Treasury Department added 22 individuals and two Russian-based entities to its sanctions list, claiming they helped the government’s goals in Ukraine.