Russia to finalize rules on cross-border crypto payments by end of 2022 |

Mikhail Mishustin, the Russian Prime Minister, ordered the government establish rules regarding crypto regulation by the end of this year.

The date by which the Russian government is supposed to reach a consensus has been set for December 19, 2022.

The Prime Minister has explicitly asked the State Duma, as well as other state authorities, to put in place coordinated policies regarding the issuance and circulation of cryptocurrencies or digital currencies in Russia.

Not just issuance and circulation, Mishustin also mentioned the regulatory requirement for crypto mining and cross-border transactions.

The draft crypto regulations are to be synchronized with the Russian Ministry of Finance, the central bank, the anti-money laundering authority Rosfinmonitoring, the Federal Tax Service and also the Federal Security Service.

Just a week ago, Deputy Finance Minister Alexei Moiseev said that the Bank of Russia agreed with the ministry to allow crypto for cross-border payments.

Russia takes crypto and its uses seriously

The Russian government is expected to have the regulations in place by the end of this year. The draft document must be ready no later than December 1, 2022.

This requirement of the Russian government sheds light on one aspect. This confirmation shows that Russia has started to consider issues related to cryptocurrency, especially for cross-border transactions.

Russia’s stance on digital assets has been rather polarizing. She wants to allow cross-border transactions while the Russian central bank is still against the legalization of exchanges and gives a green signal to digital assets as a means of payment.

The idea of ​​banning exchanges but allowing cross-border payments has raised many questions, especially since Russia still hasn’t put in place a framework that would provide related laws.

How Russia plans to differentiate between domestic and cross-border payments remains to be determined.

Russia is the first country to have accepted cross-border payments, but has still not accepted local payments and exchanges of digital assets.

Cryptography Uncertainty

Russia’s jurisdiction over digital assets remains ambiguous and uncertain, even after the adoption of the main crypto-related law regarding digital financial assets in 2020.

This law prohibited Russians from using cryptocurrency as a means of payment, but still did not prohibit activities such as crypto trading and mining in Russia.

Russia’s financial regulators have still not approved such a local digital asset trading platform, but have only allowed digital asset trading through renowned exchanges such as Binance.

This need to oversee the regulations surrounding cross-border payments is explained by the simplification of access for foreign investors and issuers to the Russian financial market. A remote identification mechanism should be put in place to make cross-border transactions happen without too much hassle.

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