A high-ranking member of the Russian parliament has urged for the adoption of a relevant legal framework to properly regulate cross-border crypto payments. His proposal comes after key regulators in Moscow said that Russia needs to allow the use of cryptocurrencies in foreign trade, now that it’s having to deal with serious financial restrictions.
Financial Market Committee Chair Suggests Adopting Legislation for Russia’s Crypto Payments
Anatoly Aksakov, head of the Financial Market Committee at the State Duma, considers it necessary to provide cross-border settlements in cryptocurrency with a regulatory framework. The lower house of Russian parliament is expected to review crypto-related draft legislation this fall, including a new bill “On Digital Currency,” and Aksakov has been an active participant in these efforts.
The influential member of the lower house of Russian parliament issued the call after earlier this week the Russian finance ministry and central bank agreed that for the country “it is impossible to do without cross-border settlements in cryptocurrency,” in the current circumstances. Russia has been facing mounting Western sanctions over its invasion of Ukraine.
Quoted by the business daily Kommersant and the RIA Novosti news agency, Aksakov emphasized that determining the legal boundaries for the use of cryptocurrencies in cross-border settlements is an important task. He also marked as a high priority the need to ensure that those who enter this market are identified by authorities.
“First of all, this requires a legislative basis for a legal and transparent process. At the same time, it is worth remembering the ban on cryptocurrencies as a means of payment in the Russian Federation,” the deputy explained.
Despite the consensus with the Ministry of Finance on international crypto payments, the Central Bank of Russia also made it clear that the development is not about legalizing cryptocurrency payment or exchange transactions inside the country. In January, the monetary authority proposed a blanket ban on domestic crypto activities including issuing, trading, and mining.
Stablecoins have been discussed as another option for sanctioned Russia. Deputy Finance Minister Alexey Moiseev unveiled that Moscow is working with the governments of several “friendly countries” on the establishment of clearing platforms for international stablecoin settlements as part of efforts to avoid using major fiat currencies such as the U.S. dollar and the euro.
Do you think Russia will manage to significantly substitute Western fiat money with cryptocurrencies or stablecoins in trade with partners? Share your expectations in the comments section below.
