Russian Prime Minister, Mikhail Mishustin, gave tuesday official instructions to the government to reach a consensus on the regulation of cryptocurrencies in Russia before December 19, 2022.
The prime minister specifically called on the Duma and other state authorities to come up with coordinated policies on the regulation of the issuance and circulation of digital currencies in Russia. Mishustin also called on regulators to finalize regulations on cryptocurrency mining and cross-border transactions in digital currencies.
The official stressed that the upcoming cryptocurrency regulation project should be in line with the Russian Ministry of Finance, the central bank, anti-money laundering authority Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service.
The latest news provides another official confirmation that Russia is taking the possibility of using cryptocurrencies in cross-border transactions more and more seriously.
Last week, the Deputy Minister of Finance, Alexei Moiseev reported that the Bank of Russia has agreed with the Ministry of Finance to legalize cryptocurrencies for cross-border payments. Despite its willingness to authorize cross-border transactions, the Russian central bank continues to oppose the legalization of local cryptocurrency exchanges, as well as the legalization of cryptocurrency as a means of payment.
The feasibility of banning local crypto exchanges while allowing cross-border payments apparently raises many questions, especially given that Russia has yet to come up with a framework to provide such laws.
Russia could be the first country in the world to authorize cross-border crypto payments while banning within the country, as he told Cointelegraph, Maria Agranovskaya, lawyer and fintech expert at the Russian State Duma. “This is not a common approach, as far as I know,” she said.
The question of how exactly Russia plans to differentiate between domestic and cross-border crypto payments remains to be answered, Agranovskaya noted. “This distinction does not yet exist. All ‘foreign’ cryptocurrencies are considered digital currency and that is all for now,” he said, and added:
“At the moment it is not clear at all. I assume that the matter will follow the foreign exchange control regulations: tax residents in the local territory will not be able to use crypto for internal payments.”
Russia has emerged as one of the most uncertain jurisdictions for cryptocurrencies, despite adopting its main cryptocurrency-related law, On Digital Financial Assets, in 2020. The law prohibited Russians from using cryptocurrencies as payment, but did not prohibit activities. such as trading and mining in the country. Russian financial regulators have not approved any local cryptocurrency trading platforms, only allowing cryptocurrency trading through foreign exchanges such as Binance.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.