On September 1, a law allowing the use of cryptocurrencies for international trade settlements came into force in Russia. However, this activity is still not fully regulated.
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, announced that the Central Bank and the Ministry of Finance of the Russian Federation are working on regulations to establish rules for cross-border cryptocurrency payments. The government aims to finalize these regulations by the end of November.
Russia Recognizes Cryptocurrencies for Cross-Border Payments
The Russian government will first test the cryptocurrency payment mechanism under an experimental legal regime (EPR). This means that only selected participants, such as credit institutions and banks, will engage in the process. The phased approach will aim to minimize risks and help define regulations to protect the market from fraud.
Aksakov revealed that companies are already using cryptocurrencies for import and export payments, with transactions estimated at billions of dollars. He stressed the need to limit the number of financial institutions involved in such transactions at the initial stage in order to better understand the market and develop effective regulation.
“It is important to protect the market from unscrupulous participants,” Aksakov said, noting that cryptocurrency is used not only to pay for essential goods, but also to buy weapons and drugs.
Read more: Cryptocurrency regulation: what are the pros and cons?
The Central Bank and the Ministry of Finance are currently developing regulations that will define the rules for the operation of cross-border crypto payments and specify which individuals and organizations can participate in the initial phase of trading. Over time, the range of participants will expand and new trading platforms will appear.
Aksakov stressed that the use of digital assets would be limited to foreign trade activities. He clarified that Russia would not recognize cryptocurrency as a means of payment in the country.
“Cryptocurrencies should not be allowed as a means of payment in the country. They will only be used for foreign trade transactions, and this process must be regulated. In my opinion, cryptocurrencies should be regulated in the same way as foreign currencies,” he said.
Read more: The 9 Most Crypto-Friendly Countries for Digital Asset Investors
Disagreements between the Central Bank and the Ministry of Finance regarding the creation of cryptocurrency exchanges in Russia have already been reported. Bloomberg sources also suggest that the use of cryptocurrencies for cross-border payments will take place within the framework of the Russian payment system MIR.
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