Russia approves cross-border payments with crypto

The Bank of Russia and the Ministry of Finance of Russia have reportedly reached an agreement that will allow cross-border transactions in cryptocurrencies.

Legal cross-border payments

Russian deputy finance minister Alexei Moiseev has said the government department has “generally” reached an agreement with the central bank. It is about a rule that would allow residents to make cross-border payments using cryptocurrencies. The proposed policy change is reportedly aimed at giving Russian citizens access to digital wallets.

The policy generally describes how cryptocurrency can be obtained and what can be done with it.

– Said Moiseev

Russian news agencies had reported that the central bank had discussed the issue of cross-border crypto payments with government officials. However, the Bank of Russia reportedly opposed allowing crypto exchanges to operate legally. It was also against accepting cryptocurrency as legal tender.

On September 5, Moiseev said the following:

Now that people outside the Russian Federation are opening crypto wallets, it is necessary to do so in Russia with entities supervised by the central bank. These must meet the requirements of Anti-Money Laundering and Know Your Customer.

Russia has a mixed relationship with crypto. In 2020, the country passed legislation banning the use of cryptocurrencies for payments. President Vladimir Putin also signed a bill in July banning digital financial assets as payments.

In May, Commerce Minister Denis Manturov suggested that Russia would legalize crypto payments sooner or later.

Since the Russian invasion of Ukraine in February, the government, companies and certain individuals in the country have been the target of extensive economic sanctions. On September 15, the US Treasury Department added 22 individuals and two Russian-based entities to its sanctions list.

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