Russia has recently been leaning towards cryptocurrencies like Bitcoin and Ethereum. Sanctions against the country since it began evading Ukraine have piled up, and the government has turned to cryptocurrencies to circumvent those sanctions. In its latest move, the Russian Central Bank has decided to legalize cryptocurrencies for cross-border payments.
Russia improves trade
Over the past few months, the Russian government has been open about its stance on cryptocurrencies. She has previously said that the country is exploring ways to use cryptocurrencies such as bitcoin and ethereum to improve payments in the country. She has now taken concrete steps towards this.
On September 22, the Central Bank of Russia announced that it had reached an agreement with the Ministry of Finance to allow crypto-payments for cross-border use. This means that cryptocurrency will not be a payment method in the country, individuals and businesses will be able to use it to conduct cryptocurrency transactions outside the borders of Russia. It would also allow residents to access digital asset wallets and operate them within the country.
The bill included ways that individuals and businesses could acquire cryptocurrencies, what they could do with said cryptocurrencies, and how payments would be made. Russia also wants to keep up with the rest of the world, says Finance Minister Alexei Moiseyev.
Moiseev was alluding to the fact that people outside of Russia can access and use digital asset wallets. However, as such, it should be accessible to the people of the country. However, he called for regulation of cryptocurrencies so that they cannot be used by bad actors for nefarious purposes. "Now people are opening crypto wallets outside of the Russian Federation." It is necessary to make it possible in Russia, to do it by entities under the supervision of the central bank, which are obliged to comply with the requirements of anti-money laundering legislation and, first of all, of course, to know their client, "said the Minister of Finance.
Adopting cryptocurrency as a means of cross-border payments will help the country avoid many of the financial sanctions that have been levied against it. Russia also keeps a tight lid on the use of cryptocurrencies by only allowing them outside the country and involving entities that are under the supervision of the central bank.
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