Russia Considers Legalization of Crypto for Cross-Border Payments

  • Both Russia’s Ministry of Finance and central bank have agreed that cross-border crypto payments will soon be legalized in the country.
  • Deputy Finance Minister Alexei Moiseev noted that the current geopolitical conditions have made it “impossible to do without cross-border settlements in cryptocurrency”.
Vladimir Putin, the President of Russia

Vladimir Putin, the President of Russia, speaking at a press conference, Paris, France, 29 May, 2017. Shutterstock

Russia’s Ministry of Finance and the country’s central bank have agreed that soon there will be a need to legalize cross-border cryptocurrency payments, local news outlet TASS reported on 5 September.

According to the publication, the Bank of Russia and the Ministry of Finance have somewhat changed their stance on crypto regulations, and were now considering the legalization of crypto payments for cross-border transactions. TASS cited deputy finance minister Alexei Moiseev, who said in an interview that the current geopolitical conditions has made it “impossible to do without cross-border settlements in cryptocurrency”.

Moiseev noted that many Russians were now relying on foreign platforms to open crypto wallets, which only outlined the need of taking a softer stance on crypto regulations, and enabling crypto services in Russia. He said in a statement:

“Now people open crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank, which are required to comply with the requirements of anti-money laundering legislation, and first of all, of course, to know their client.”

Russia’s stance on crypto apparently started to change around the time the country was hit by economic sanctions following its invasion of Ukraine. Back in February, the Bank of Russia advocated for a complete ban on crypto — claiming it posed a significant threat to the country’s financial stability — but the Ministry of Finance opposed the central bank by saying the asset class should be regulated rather than banned.

The country’s president, Vladimir Putin, signed a bill back in July that amended Russia’s ban on crypto to prohibit the use of specific token as a form of payment, including security tokens, utility tokens, and non-fungible tokens (NFTs).

Discussion
Related Coverage
DoJ Says Lack of U.S. Crypto Laws Irrelevant in SBF Lawsuit
  • Sam Bankman-Fried’s legal counsel had claimed he should not be charged with any crimes involving FTX as it was not regulated in the U.S., only FTX.US was.
  • The DoJ said the claim was irrelevant as SBF was charged for violating existing laws for misappropriating customer assets.
October 4, 2023, 12:18 PM
sbf

Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock

U.K. Regulator Shut Down 26 Crypto ATMs Since Start of 2023
  • The U.K. Financial Conduct Authority continues its crackdown on crypto ATMs in the country, and has disrupted a total of 26 machines since the start of the year.
  • The regulator warned the public back in March 2022 that all crypto ATMs in the country were operating illegally, and issued a “shut down or face further action” order.
Australian Regulator Reportedly Searched Binance’s Offices
  • Anonymous sources have said that the offices of Binance Australia were searched on Tuesday as part of an ongoing investigation into the exchange’s derivatives operations.
  • Australia’s financial regulator, who conducted the reported search, canceled Binance Australia’s derivatives license back in April, and the exchange no longer offers the service in the country.