The Bank of Russia, the nation’s central bank, has been reconsidering the framework to regulate crypto and it has come to an agreement with the finance ministry to authorize cryptocurrencies for cross-border payments, according to a Monday report from the local news agency TASS. As per speculations, the Bank of Russia and the finance ministry anticipate legalising cross-border cryptocurrency transfers soon.
According to reports, the nation’s central bank acknowledged that given the geopolitical context, cross-border crypto transfers are unavoidable.
Legislators in Russia have long been against the concept of accepting cryptocurrency as payment. A significant crypto regulation called “On Digital Financial Assets” was approved by Russia in 2020, outlawing the usage of cryptocurrencies like Bitcoin (BTC) as payment methods.
Since the Russian ruble is the only form of legal tender in the nation, the Bank of Russia has been hesitant about something like cryptocurrency payments.
In Russia, the concept of using cryptocurrencies as a form of payment first emerged in late 2021. Then, Russian President Vladimir Putin remarked that using cryptocurrency for the trading of energy resources like oil and gas was “still premature.”
Following Russia’s invasion of Ukraine, the situation appears to have shifted as a result of economic penalties from the West. Elvira Nabiullina, the governor of the Bank of Russia, later suggested that cryptocurrency can be used for cross-border payments, but only if cryptocurrency doesn’t enter Russia’s domestic financial system. In May, the Minister of Industry and Trade declared that Russia would legalise crypto payments “sooner or later.”
The need for local cryptocurrency services in Russia was emphasised by Moiseev, who pointed out that many Russians use international sites to create crypto wallets. This is necessary for Russia and involves central bank-supervised firms that are required to adhere to Know Your Customer and anti-money laundering regulations, the official said.
Moiseev claimed that the planned infrastructure is “too rigid” for the use of cryptocurrencies in cross-border settlements and that the central bank has revised its approach to regulating the business “given that the situation has changed.” He said they have to legalise “somehow.”