The Russian prime minister ordered the government to establish rules regarding regulating cryptocurrencies to facilitate cross-border payments with them. The official also requested the legislative assembly to introduce policies to regulate the issuance and circulation of crypto assets in the Eurasian country.
The Russian government recently said it wants rules to allow cross-border payments with cryptocurrencies. For that reason, Mikhail Vladimirovich Mishustin, the Russian Prime Minister, ordered regulators to review the regulation of crypto assets.
The Central Bank of Russia (CBR) and the Ministry of Finance have agreed to legalize cryptocurrencies as a cross-border payment method. Alexei Moiseev, deputy finance minister, said that the CBR had rethought the focus on those assets due to the changes in the political situation.
Moiseev also stated that adopting cryptocurrencies as a method of cross-border payments allows the Russian population to diversify their economy. However, he clarified that they would introduce a regulatory framework that combats money laundering and terrorism financing.
In this sense, Moiseev considers enabling the operation of local cryptocurrency services in the Eurasian country important. He pointed out that this situation forces many citizens to turn to foreign platforms to open their crypto wallets.
However, the CBR remains against the legalization of cryptocurrency exchanges and crypto assets as a method of payment. The financial institution considers that crypto assets contribute to illicit activities like money laundering and terrorism financing.
Russia Plans to Establish Rules for Cross-Border Cryptocurrency Payments
The Russian prime minister requested the Duma (legislative assembly) and other authorities to create policies to regulate the issuance and circulation of cryptocurrencies. Likewise, he asked the regulators to finalize the regulations on mining activity and cross-border transactions with crypto assets.
The official stressed that there must be an agreement between various entities regarding the next cryptocurrency regulatory bill. The Ministry of Finance, the Central Bank, the anti-money laundering authority Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service must work together.
The Russian government must put the regulations into force before the end of 2022 but must have the draft document ready before December 1st. In addition, the above entities must reach a consensus on December 19th to allow the new law to work well.
Cryptocurrencies play a relevant role in the world economic system, which Russia is beginning to take more seriously. The sanctions imposed by the United States and the European Union led it to rethink the regulation of cross-border payment with those assets.
The decision of Russia to allow the mining of cryptocurrencies and cross-border payments with them is only one example of what is happening worldwide. Regulators and politicians in many countries have become aware of their influence, which has led them to work on creating regulations to control them.
Meanwhile, Bitcoin is trading at around USD 20,093 and has accumulated a 4.2% gain over the past week. While its daily trading volume is above USD 38.54 billion, its market capitalization is about USD 384.80 billion, according to CoinGecko.
By Alexander Salazar
