Home
News
Permitting Regional Crypto Providers to Operate in Russia
The central bank of Russia has acknowledged that it is nearly impossible to stop cross-border cryptocurrency transfers. Russia’s geopolitical environment is currently under a great deal of strain. Other regional news sources claim that the central bank has chosen a different strategy for controlling the bitcoin market. To make it acceptable for foreign payments, the Bank of Russia intends to collaborate with the finance ministry.
According to Alexei Moiseev, deputy finance minister, for the entire process to go well, the central bank must work with the finance ministry. Following the partnership, international payments will be simple. Alexei Moiseev also emphasized the need of permitting regional cryptocurrency providers to operate in Russia. It is widely known that the notion of using digital assets as a form of payment has not exactly been welcomed by Russian legislators.
The Digital Financial Assets law, which Russia enacted, forbade the use of cryptocurrencies like Bitcoin (BTC) for international payments. The concept of digital asset payments has caused the Bank of Russia to feel uneasy. The sole legal currency in the nation is the Russian ruble, which is why Russia sought to protect it. Because it was still early, Russian President Vladimir Putin did not support the concept of utilizing cryptocurrency to trade natural resources like oil and gas.
Western Economic Sanctions to be Blamed
These circumstances have changed since Russia invaded Ukraine as a result of the economic sanctions imposed by the West. Later, Elvira Nabiullina, governor of the Bank of Russia, said that cross-border use of cryptocurrency is possible. The Russian government’s major worry is what would happen if cryptocurrency entered the country’s domestic banking system. As the situation appears to have altered, Alexei Moiseev, the deputy finance minister, has also reexamined the strategy for regulating the cryptocurrency business.
The proposed infrastructure, according to Moiseev, has been too inflexible for the use of cryptocurrencies in cross-border transactions. Since he shares the same perspective, it should be legalized. The Western economic sanctions that were imposed after the Russian invasion of Ukraine are to blame for the situation’s shift. The Ministry of Industry and Trade previously stated that Russia will sooner or later authorize cryptocurrency payments.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
