In November, Russia anticipates the implementation of regulations that will authorize the use of cryptocurrency in international commerce.
A law went into effect in Russia on September 1 that permits the use of cryptocurrency for foreign trade settlements. Nevertheless, this activity is still pending complete regulation.
Anatoly Aksakov, Chairman of the State Duma Financial Market Committee, disclosed that the Central Bank and the Ministry of Finance of the Russian Federation are in the process of developing ordinances to establish regulations for cross-border cryptocurrency payments. By the conclusion of November, the government intends to finalize these regulations.
The Russian government will initially evaluate the cryptocurrency payment mechanism under an experimental legal regime (EPR). This implies that only a limited number of participants, including credit organizations and institutions, will participate in the process. The objective of the phased approach is to reduce risks and assist in the establishment of regulations to safeguard the market from fraud.
Aksakov disclosed that businesses are currently employing cryptocurrency for import and export payments, with transactions estimated to be in the billions of dollars. He emphasized the necessity of limiting the number of financial institutions that are involved in these transactions during the initial stage in order to gain a more comprehensive understanding of the market and to establish effective regulations.
Aksakov emphasized the significance of protecting the market from wicked participants, pointing out that cryptocurrency is not only utilized to purchase essential products but also for the acquisition of weapons and narcotics.
The Central Bank and the Ministry of Finance are in the process of droughting ordinances that will establish the operational regulations for cross-border crypto payments and specify the individuals and organizations that are eligible to participate in the initial trading phase. New trading platforms will emerge as the range of participants expands over time.
Aksakov emphatically stated that they will limit the utilization of digital assets to foreign trade activities. Russia will not acknowledge cryptocurrency as a payment method within the country, as he explicitly stated.
“We should prohibit the use of cryptocurrency as a payment method within the country. These transactions will exclusively involve foreign commerce, necessitating regulation.” He declared, “In my opinion, cryptocurrency should be subject to regulation like foreign currencies.”
As previously reported, there have been disagreements between the Ministry of Finance and the Central Bank in Russia regarding the establishment of cryptocurrency exchanges. Bloomberg sources also indicate that the utilization of cryptocurrencies for cross-border payments will occur within Russia’s MIR payment system.
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