Russia Says “Impossible to Do Without” Crypto; Set to Legalize Industry

Russia’s Ministry of Finance and the Central Bank have reportedly agreed to legitimize the use of cryptocurrencies for cross-border payments.

The latest developments come after the Bank of Russia has long voiced its skepticism about cryptocurrencies due to financial stability. The central bank has even campaigned for an outright ban on trading and mining digital assets in the country. 

Bank of Russia Agrees to Legalize Cryptocurrencies for Settlement

Aleksey Moiseev, the Deputy Minister of Russia, confirmed the agreement in an interview with Russia-24 news today. He noted that the Russian government and central bank have concluded that “it is impossible to do without cross-border settlements in cryptocurrency.” 

The minister noted that the country plans to legalize virtual currencies for settlement of payments soon; however, the opinions of the government and its central bank towards the regulation of the market remain unchanged.

“As for the regulation of the cryptocurrency market, the difference in approaches has remained. But I can say that the Central Bank has also rethought [the approach], taking into account the fact that the situation has changed, and we are rethinking it. Because the infrastructure that we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which, of course, we must, first of all, legalize somehow,” said Moiseev. 

Crypto Users in Russia Relies Heavily on Foreign Platforms 

Moiseev further addressed the importance of opening local crypto services in the country. So far, most Russian crypto users rely on foreign platforms to trade cryptocurrencies, according to the deputy finance minister.

He also explained that it is necessary to allow users to open their wallets in Russia using registered platforms supervised by the Central Bank, which requires all entities under its jurisdiction to comply with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) rules in the country. 

Meanwhile, the recent update regarding Russian crypto regulations follows recent reports about the country accepting donations in crypto to fund its ongoing crisis against Ukraine. 

In July, Coinfomania reported that Pro Russian Groups and other non-profit organizations (NGOs) had received $2.2 million in digital assets from donors across the globe since the start of the war. The funds were used to support the military to purchase armories and other military supplies to help wounded soldiers.