Russia’s central bank has acknowledged that cross-border cryptocurrency transfers are inevitable given the current geopolitical climate.
According to the local news outlet TASS, the Central Bank of Russia has changed its mind about regulating cryptocurrencies and has decided to cooperate with the Ministry of Finance to legalize them for international payments.
According to reports, Deputy Minister of Finance Alexei Moiseyev said that the Bank of Russia and the Ministry of Finance soon plan to legalize cross-border payments in cryptocurrencies. Moiseyev emphasized the need for local cryptocurrency services in Russia, noting that many Russians use international websites to create cryptocurrency wallets. Official say that this had to be done in Russia and involved organizations regulated by the central bank, which must follow “know your customer” and anti-money laundering rules.
Legislators in Russia have long opposed the concept of accepting cryptocurrencies as payment. In 2020, Russia approved a major cryptocurrency regulation called “On Digital Financial Assets,” which bans the use of cryptocurrencies such as Bitcoin (BTC) as payment methods. As the Russian ruble is the only legal tender in the country, Russian banks have been wary of the idea of cryptocurrency payments.
In Russia, the concept of using cryptocurrencies as a means of payment first appeared at the end of 2021. At the time, Russian President Vladimir Putin noted that the use of cryptocurrencies to exchange energy resources like oil and gas was “still premature”. After the invasion of Ukraine by Russia, the situation seems to have changed due to economic sanctions from the West. Elvira Nabiullina, the Governor of the Bank of Russia, later suggested that cryptocurrency could be used for cross-border payments, but only if the cryptocurrency did not enter the Russian national financial system. In May, the Minister of Industry and Trade said that Russia would legalize crypto payments “sooner or later”.
