Russia Considers Legalizing Crypto for International Payments to Combat Western Sanctions

Russia is looking at ways in adopting cryptocurrency for international payments to bypass Western sanctions. As per the latest report, Russia is planning a draft law to legalize cryptocurrencies and incorporate them in the economic infrastructure.

Ivan Chebeskov, head of the finance ministry’s financial policy department, said: “The idea of using digital currencies in transactions for international settlements is being actively discussed”.

Thus, Russia could decide to incorporate crypto payments internationally anytime soon. Russian officials on the other hand are working how to regulate on how to regulate the country’s crypto market and the use of digital currencies. The finance ministry has recently opposed to the central bank’s call of having a blanket ban on digital assets.

Although there have been discussion going on for months, there has been no final deadline as to when will Russia implement. The finance ministry will soon discuss adding the latest proposal on international crypto payments to the draft law.

Amid international sanctions, Russia’s access to cross-border international payments has turned limited. As per reports, the EU has frozen $630 billion worth of reserves of the Russian central bank. Furthermore, the U.S. has also forbidden Russian from making $600 million in debt payments from their funds in the U.S. banks. Having crypto for international trade would help them counter this.

Earlier, the Russian Minister of Industry and Trade of the Russian Federation, Denis Manturov, clarified his stand on cryptocurrencies. Manturov said that the country will soon legalize crypto in one way or the other.

He further added: “The question is, when this happens, how it will be regulated, now that the central bank and government are actively working on it…But everyone tends to understand that … sooner or later this will be implemented, in some format or other”.

Russia is also working on a bill for the functioning of crypto exchange in the country. Only authorized exchanges shall be allowed to store information regarding crypto holders. However, they will have to share all the transaction details with Russian law enforcement. Furthermore, only customers who have passed identity verification will be able to buy and sell digital assets on these platforms.