Russia may allow cross-border settlements in cryptocurrency

It is reported that the Bank of Russia and its Ministry of Finance have entered into an agreement allowing cross-border settlements in cryptocurrencies.

Russia continues to turn to the cryptocurrency ecosystem. It is reported that the Bank of Russia and its Ministry of Finance, represented by the Deputy Minister of Finance of Russia Alexei Moiseev, have reached an agreement allowing cross-border settlements in cryptocurrencies, according to the Russian business publication Kommersant.

This bill “generally describes how to buy cryptocurrency, what you can do with it, how you can or cannot pay with it, especially in cross-border settlements,” Russia’s deputy finance minister told Reuters. – 21st century”, held from Wednesday to Saturday in Kazan.

“It should be possible in Russia”

In early September, the Deputy Minister of Finance indicated his intention to move in this direction.

“Now people are opening cryptocurrency wallets outside the Russian Federation. This must be done in Russia, this must be done by persons controlled by the Central Bank who are required to comply with the requirements of the legislation on combating the legalization of proceeds from crime, and above all, of course, to know their client,” he said.

At the end of February, the Russian Ministry of Finance announced a bill regulating cryptocurrencies, while the Central Bank of Russia proposed to ban the mining of cryptocurrencies on its territory from January.

“Regulation of mining”

Apart from the issue of cross-border settlement, Russia will be the sixth most important country in the Bitcoin network, where there are many miners. Today, cryptocurrency miners in Russia consume more than 2% of the country’s electricity. In this context, the issue of mining was also discussed at the International Banking Forum.

“We came to a consensus on the need to regulate mining. In this part, we have a conceptual agreement, but there are some points that we must accordingly discuss in the near future to finalize the text of the bill,” said Kirill Pronin. , director of the financial technology department of the Central Bank of Russia, according to the Russian news agency RIA Novosti.

Prohibition of cryptocurrencies as a means of payment

Russia has an ambiguous attitude towards cryptocurrencies. In mid-July, the country passed a law banning cryptocurrencies as a means of payment.

“It is prohibited to transfer or accept digital financial assets in exchange for goods transferred, work performed, services rendered, as well as in any other way that allows acceptance of payment for goods (work, services) by a digital financial asset, except in other cases provided for by federal law,” — noted in the document.

While it is still possible to buy cryptocurrencies or NFTs as a speculative asset in Russia, they cannot be used in exchange for goods and services.

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