Russia’s Central Bank Agrees to Legalise Crypto for Cross-Border Payments
The Bank of Russia has finally agreed with the country’s Ministry of Finance to legalise cryptocurrencies for cross-border payments, TASS reported Monday.
Russia’s invasion of Ukraine caused global authorities such as the United States and the United Kingdom to place sanctions on the country. Russia has also been strict on cryptocurrencies due to their potential use for illegal activities. However, this move is deemed remarkable as the nation is finally ready to embrace cryptocurrencies for international payments.
Legalising Crypto for International Payments
According to the report, Russia’s Deputy Minister of Finance Alexei Moiseev revealed in a recent interview that the Finance Ministry and Central Bank have agreed to make crypto for cross-border payments legal, considering current conditions.
“As for the regulation of the cryptocurrency market, the difference in approaches has remained. But I can say that the Central Bank has also rethought the approach, taking into account the fact that the situation has changed, and we are rethinking it,” he said.
Moiseev further explained that Russia plans to retouch its proposed infrastructure for settlements since the already existing plan when executed, will be too rigid for international crypto payments. However, he asserted that the regulatory framework that would approve the move must first be legalised and introduced to curb illicit use cases.
“On the one hand, give people the opportunity to do it, on the other hand, put it under control so that there is no laundering, paying for drugs, and so on,” he added.
Russia to Encourage Local Crypto Wallet Providers
The Deputy Minister also said that the essence of the Finance Ministry’s proposal was to encourage the opening of crypto wallets in Russia, similar to those on the internet, by establishments regulated by the central bank. However, such entities must comply with the outlined anti-money laundering and KYC (Know Your Client) rules.
“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,” Moiseev explained.
~ By William A. Frederick ~
