Russia: Cross-border crypto ‘Da,’ local exchange ‘Net

Experts in Russia might soon be proudly bragging that their nation would be the first to authorize cross-border crypto payments while banning local crypto payments. The Russian Prime Minister has set a deadline of 19th December 2022 for the state authorities to develop regulations and policies for this new rule.

Russia’s Current Stance

Since 2020, Russia’s attitude toward crypto payments has been uncertain. The On Digital Financial Assets Law has prohibited the locals from using digital asset payments. However, mining and trading using crypto are legal. To date, there are no local trading platforms approved by local financial regulators. Thus, people are using foreign crypto exchanges for trade. Given all these muddles, the ministry has added one more to the list with this cross-border crypto payment legalization. 

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The New Regulations For Cross Border Crypto Payments

Mikhail Mishustin, Russian PM, has specifically notified Duma and others to bring out the new coordinated rules and policies for issuing and circulating digital currencies in the country.

What Can You Expect In This Policy?

• This policy is to have cross-border transactions and crypto mining regulations.
• This draft should also be in accordance with the Central Bank, Russian Finance Mistry, Federal Tax Service, Federal Security Service, and Anti-Money Laundering Authority.

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The Conundrum Of The New Policy

The policy will align with the Central Bank’s regulations. Still, the Central Bank is against local digital asset payments. However, the Finance Ministry and Bank of Russia have already agreed on legalizing cross-border payments.

Is Such A Cross-Border Crypto Payment Feasible?

For such a framework to be feasible, the system should be able to identify whether the payment is domestic or cross-border. However, up to date, there is no technology to highlight such distinctions. As of now, according to a Russian fintech expert, all the cross-border crypto is as a digital currency.

Wrapping Up

Even the experts are dumbfounded about allowing cross-border crypto payments to align with the current currency control regulations. In contrast, the locals are banned from doing the same under the same law. However, the Russian government has given them until December to figure out a loophole.