Russia to Allow Cross-border Crypto Transfers – Report

Russia to Allow Cross-border Crypto Transfers – Report

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19 hours agoTue Sep 06 2022 09:15:39

Russia-to-Allow-Cross-border-Crypto-Transfers---Report

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  • Russian financial regulators have forecasted a future where cryptocurrencies sit at the heart of cross-border transactions
  • The country seems to soften its earlier stance regarding crypto
  • In a report, the Russian finance ministry and the central bank predicted a future where it’s impossible to ignore cryptocurrencies

Russian news outlet TASS yesterday reported that two financial regulators saw it “impossible to do without” virtual currencies when sending and receiving funds outside the country. The move could see Russia take a similar line to that taken by Iran in recent weeks and begin using cryptocurrencies to pay for imports, allowing the country to deal with friendly governments and potentially skirt U.S. and EU sanctions.

Regulations Shouldn’t Hinder Using Crypto in Russia

Citing the current geopolitical landscape, Alexei Moiseev, the country’s deputy minister of finance, revealed that Russia is working to recognise cryptocurrency payments. Appearing in a television interview, Moiseev disclosed that the move is meant to shift reliance from international crypto platforms and strengthen the local market.

In doing so, the Central Bank of Russia (CBR) will be able to ensure the move doesn’t open a door to money laundering and ensures KYC (know-your-customer) checks. According to the deputy finance minister, the regulations put in place shouldn’t hinder people from using crypto in Russia.

Ukraine Uses Crypto to Fund Military Operations, Russia Oversteps Sanctions

Russia has had a cold-warm relationship with cryptocurrencies to date. During the cold season, Vladimir Putin, the country’s president, sought to cut off anything to do with virtual currencies within the Russian borders. Recently however, Ksenia Yudaeva, Russia’s deputy governor, hinted that CBR is considering allowing Russians to use crypto in cross-border settlements, something that now seems to be gaining momentum

The move toward a warmer embrace of digital assets is seen to emanate from the ongoing conflict between the country and its neighbour Ukraine. Since the start of the standoff, both countries have embraced Bitcoin, Ethereum, and other leading cryptos. Ukraine, for example, recently disclosed that the global cryptocurrency community has sent $54 million in donations. The funds went to buy military equipment and supplies.

Russia, on the other hand, has allegedly been using crypto when trading with other countries to overstep sanctions.

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