The Finance Ministry “partially” supported the proposal, adding that further study is needed.
Russia’s Federal Tax Service (FTS) has joined the debate over digital asset regulation in Russia with an unexpectedly forceful suggestion to allow Russian companies to use digital assets as a payment method when leading international transactions.
On Wednesday, local newspaper Izvestia reported that the FTS left its official comments on the draft crypto bill prepared by the Ministry of Finance. The tax agency proposed allowing Russian entities to use digital assets for various financial operations in its comments.
The initiative could fundamentally change the essence of the proposed framework, which previously excluded any other role for digital assets than investment assets. As Izvestia noted, the current draft counts on a clause according to which the ban on using crypto as a payment method is in force.
The FTS proposed to act on this caveat to bring more diversity to the payment alternatives available to Russian companies attached to international trade amid strict financial sanctions applied on the nation.
The FTS would also have specified that entities would need to purchase and sell digital currencies through regulated wallets and exchange networks. In response to the FTS feedback note, the Ministry of Finance left the “partial support” mark, arguing that the issue needs further discussion.
A Currency Bill Waiting for Approval
On April 8, the Russian Ministry of Finance created the bill titled “On Digital Currency” (also known as the “Cryptocurrency Bill”) and sent it to the government for approval. A week later, the Russian Chamber of Commerce and Industry president called for collaboration with African countries to allow cross-border settlements in crypto and central bank digital currencies.
Russia is still working hard to create a federal cryptocurrency bill after banning residents from making payments in digital assets such as Bitcoin in early 2021. In mid-February, the Bank of Russia officially released the test of the digital ruble, completing the first transfers of CBDC between citizens successfully.
Many nations in Africa have also progressed in developing CBDCs, with countries such as Kenya and the Republic of South Africa reporting some progress with CBDCs earlier this year. Last year, Ghana was working on developing offline capabilities for its potential CBDC to encourage its use across all sectors of its society.
The announcement came just a month after Ghanaian Vice President Mahamudu Bawumia advocated for African governments to receive digital assets to boost trade across the continent during the Fifth Ghana International Trade and Finance Conference held in July.
By: Jenson Nuñez
