Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says

Officials in Moscow indicated that Russian companies could begin transacting cryptocurrency with foreign partners as soon as next year. They will have the freedom to choose which coin they prefer. This sanctioned country is working to legalize foreign trade with digital assets. It could happen within the next few months.

Russian Government to Open Cryptocurrency International Transactions

Russia could authorize cross-border cryptocurrency settlements using the law "On Digital Currency", which was presented in February by the Ministry of Finance and supported by the government. It is expected that Russian lawmakers will review it at the State Duma (the lower house of parliament) in the fall session.

According to reports, Ivan Chebeskov (director of the ministry’s Financial Stability Department) stated that the draft includes a provision regarding international transactions using digital assets. It recognises cryptocurrency as property that is eligible for use in barter transactions. The official also said that he did not rule out the possibility of passing a law governing cross-border crypto payments.

"We have several legislative initiatives that are being worked on, but they have not been submitted to the government yet. According to Chebeskov, there could be many options for how this could be implemented. He also said that deputies might be involved in the initiative. He said that it is possible to anticipate international crypto transactions by 2023.

Anatoly Aksakov (head of the parliamentary Financial Market Committee), was one of those involved in these efforts and said in conversation that he is ready to sponsor legislation to regulate the subject. Further, he explained that Russian companies will have the option to trade in any cryptocurrency they choose — bitcoin, ethereum, or any other.

However, he insisted that Russia should create its own crypto infrastructure. He stressed that only participants should be able to access the crypto market through this infrastructure and that it must be under strict regulatory control. Aksakov acknowledged that Russia does not have the infrastructure, but stated that the stock markets in Moscow and Saint Petersburg can provide it. He also expressed optimism that crypto transactions can be made internationally in the next year.

The Russian Ministry of Economy announced that it is working with the Ministry of Finance, Central Bank of Russia and others on the topic of digital currency for foreign trade. Representatives of the ministry assured that they support this approach because it can reduce sanctions, particularly for small and medium-sized businesses that have difficulty making international payments.

Russia has been looking for a way around the financial restrictions that have been imposed by Western governments in response to its invasion of Ukraine. Recently, the central bank and the finance ministry agreed that cross-border cryptocurrency settlements were necessary. Strongly opposed to allowing bitcoin and other digital currencies to circulate freely, the monetary authority stressed that crypto is not being considered legal as a payment method within the country.

Are you positive that Russia will allow international cryptocurrency payments before the end of this year? Leave your comments below.

By: Lubomir Tassev
Title: Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says
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Published Date: Wed, 14 Sep 2022 14:00:54 +0000

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