Regulation of cross-border Crypto payments is coming to Russia

On September 1, a law allowing the use of cryptocurrency for foreign trade settlements came into effect in Russia. However, this movement is still awaiting full control.

Anatoly Aksakov, Chairman of the State Duma Financial Market Committee, announced that the Central Bank and the Ministry of Finance of the Russian Federation are working on regulations to establish regulations for cross-border payments in kriptovalyutnogo. The government wants to finalize these regulations by the end of November.

Russia Recognizes Crypto for Cross-Border Payments

The Russian government will initially test the cryptocurrency payment method under the experimental legal regime (EPR). It means that only selected participants such as credit organizations and banks are involved in the process. A standardized approach helps to define rules to reduce risks and protect the market from fraud.

Aksakov noted that companies are using cryptocurrency for payments in import and export transactions worth billions of dollars. He pointed out the importance of limiting the number of financial institutions involved in these transactions in order to better understand the market and develop effective regulations.

“It is important to protect the market from reckless participants,” Aksakov said, adding that cryptocurrency is used not only to pay for essential items, but also to buy weapons and medicine.

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The central bank and the Ministry of Finance are drafting regulations that will define cross-border crypto payments and which individuals and organizations can participate in the first phase of trading. Over time, the number of participants will expand, and new marketing platforms will emerge.

Aksakov stressed that they will limit the use of digital assets only for foreign trade activities. Russia has made it clear that it does not recognize cryptocurrency as a payment method in the country.

“Crypto-currency should not be allowed as a means of payment in the country. It is used only for foreign trade transactions, and this process should be regulated. In my view, cryptocurrency should be regulated in the same way as foreign currencies,” he said.

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Disputes between the Central Bank and the Ministry of Finance regarding the creation of a crypto exchange in Russia have already been reported. According to Bloomberg sources, the use of cryptocurrency for cross-border payments will take place in Russia's MIR payment system.