Russian authorities are working on a way to use cryptocurrencies for settlements with other nations as part of sanctions related to the Russian-Ukrainian war.
The country’s central bank and finance ministry have agreed on a bill to regulate cross-border crypto payments, Bitcoin.com reported Sunday (September 25). Authorities will regulate the issuance, circulation and various operations with digital assets by the end of the year, including international crypto payments.
Deputy Finance Minister Alexey Moiseev said his department and the Bank of Russia have agreed on new legislation. Earlier this month, the two institutions said that Russia “cannot do without cross-border crypto payments” due to the sanctions several countries imposed on it due to the outbreak of war in Ukraine last February.
“The activities of organizations that will engage in foreign exchange transactions with digital currency, its transfer and storage, and virtual asset service providers should be subject to regulation, including registration or licensing to these people and their supervision,” the Russian government’s financial intelligence agency Rosfinmonitoring said. said.
Since starting the war, Russia has had to find ways to act in the face of global sanctions and condemnation. One such means is stablecoins, which can currently be used to make cross-border payments, according to government news agency Tass.
Learn more: Sanctions-Breaking Russian Stablecoin Would Test US Regulations
It comes as US lawmakers have long worried about how digital assets could be used to circumvent sanctions. The sanctions were led by the United States and the European Union and cut off Russia’s access to standard payment rails like SWIFT.
For this reason, Russia is working on new bilateral payment platforms using “mutually acceptable token instruments” to circumvent the need to use dollars or euros for international settlements.
Moiseev said they’re “essentially eliminating the platforms that we’re currently developing with those countries.”
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