Agreement between the Ministry of Finance and the Central Bank of Russia to develop a mechanism for international crypto-payments.
- Russia begins to develop a mechanism for international crypto payments
- This is an agreement between the Central Bank and the Ministry of Finance
- This comes after an agreement on a bill that regulates cross-border crypto payments
- Thus, he seeks to evade international sanctions by using crypto
Since the beginning of the year, specifically, after Russia invaded Ukraine and was punished internationally with economic sanctions, the country has been looking for ways to escape these actions against it. One of the mechanisms he was evaluating was the use of cryptocurrencies.
Now, according to reports from Russian media and shared by others, Russian financial authorities have started working on a mechanism to facilitate the use of cryptocurrencies for transactions with other countries under sanctions. . It should be noted that the country’s central bank and finance ministry have already agreed to work on a draft law regulating cross-border crypto payments and allowing the use of cryptocurrencies in foreign trade.
It is interesting that this is happening, given that the central bank of this country was denied the use of crypto for these purposes, as they considered it impossible to use cryptocurrencies to evade the penalties.
Thus, the Russian authorities now intend to regulate the issuance, circulation and various operations with digital assets, including international crypto payments, and make it possible by the end of 2022.
“The activities of organizations that will engage in foreign exchange transactions with digital currency, their transfer and storage, and virtual asset service providers should be subject to regulation, including the registration or authorization of such people and their supervision”the agency explained rosfinmonitoring and added that responsibilities must also include anti-money laundering.
The current version of the billAbout Digital Currency »presented by the Ministry of Finance earlier this year and revised with input from other authorities, provides for the establishment of a national infrastructure for trading crypto assets. Now, Russian regulators have turned their attention to the mechanism for settling cryptocurrency payments in foreign trade.
It should be noted that this does not mean that crypto will be a form of payment in the country, but that people and businesses will be able to use it to conduct cryptocurrency transactions outside the borders of Russia. It would also allow residents to access and operate digital asset wallets in the country.
A few days ago, Deputy Finance Minister Alexey Moiseev confirmed that his department and the Bank of Russia had reached an agreement in principle on new legislation allowing international payments in cryptocurrencies. Earlier this month, the institutions had concluded on this need.
Moiseev told local media:
Now we have a bill already agreed with the central bank. In general, it describes how to acquire cryptocurrencies, what can be done with them, and how they may or may not be used, primarily in cross-border transactions.
At the same time, according to a report by rbccrypto, Moiseev admitted that the problem with “fiat entry and exit” has not yet been resolved. Experts will then need to determine the minimum infrastructure Russia needs to create to implement these cryptocurrency payments.
On crypto wallets, Moiseev pointed out: “Now people are opening crypto wallets outside the Russian Federation. It needs to be able to be done in Russia, to be done by entities supervised by the Central Bank, who are obliged to comply with the requirements of the anti-money laundering legislation, and above all, of course, know your customer”.
Sources: Bitcoin.com, DailyHodl, Bitcoinist, File, archive
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