• Russia intends to set up a committee that will allow operators to use cryptocurrency in foreign trade transactions.
• Government officials and lawmakers have been debating the regulatory approach toward cryptocurrencies for quite some time.
• With sanctions pressure increasing, Russian authorities agreed it is impossible to do without cross-border settlements in cryptocurrency.
Russia Plans to Allow Crypto Use in Foreign Trade
Russia plans to set up a special committee that would issue permits to operators employing crypto in foreign trade transactions, according to Deputy Finance Minister Alexey Moiseev. This comes amid increasing sanctions pressure on Russia following its invasion of Ukraine.
Government Debates Regulatory Approach Toward Cryptocurrency
Government officials and lawmakers have been debating various aspects of Russia’s regulatory approach toward cryptocurrencies for quite some time. The Russian Ministry of Finance has more liberal views on the issue while the Central Bank of Russia maintains a rather conservative stance on crypto regulations, thus impeding progress for months.
Sanctions Pressure Increases Need for Crypto Settlements
With sanctions pressure increasing, Russian authorities agreed it is impossible to do without cross-border settlements in cryptocurrency, according to Moiseev. State institutions are now against legalizing transactions with decentralized cryptocurrencies like Bitcoin inside Russia except for the purpose of facilitating international payments under control.
Draft Law Under Consideration In Parliament
A draft law designed to regulate this matter is still under consideration in the State Duma, the lower house of Russian parliament. The legislative process necessary to provide the legal basis for trials may likely be delayed until the end of 2020 according to Moiseev.
Crypto Can Be Used Despite Being ‘Generally Evil’
Despite being “generally evil” and risky investments, Moiseev believes there may be individual scenarios where cryptocurrency can be used beneficially as well as domestically or internationally such as foreign trade activities which are currently restricted by Western sanctions.