Bank of Russia agrees to legalize crypto for cross-border payments.
The bank of Russia, which is the central bank of the country, has decided that due to the current geopolitical climate cross-border crypto transfers are going to be more of the norm and unavoidable. The Russian Central Bank has made a total change in its decision to allow crypto and how to regulate it. The central bank will now work with the finance ministry to legitimize it for payments made internationally.
The legalization of the cross-border payments using BTC will come soon stated Alexi Moisev, the Deputy Finance Minister as he pointed out the need for cryptocurrency by many Russians that have used international sites to create cryptocurrency wallets. The process has to be completed in Russia however as all organizations have to be under the supervision of the central bank and adhere to a Know Your Customer or KYC anti-money laundering regulations.
Bitcoin had long been outlawed as a way of legal payment in the nation as a significant crypto regulation titled “On Digital Financial Assets” which was approved in 2020 outlawed such usage as payment. Vladimir Putin had stated that “using cryptocurrency for making payments was a bit premature”; however, he may have changed his stance in the face of the sanctions imposed on the Russian government and its people since the violent occupation of Ukraine.
The sanctions have made things difficult for the wealthy and high-ranking individuals of Russia but crypto has been looked at again as a way to get around those sanctions and allow for a continuance of business for the nation that is now under international scrutiny for an occupation many see as unfounded, unfair, and unjust.
Elvira Nabiullina , the governor of the Bank of Russia suggested that cryptocurrency can be used for cross-border payments but only if it doesn’t not enter the domestic financial system of Russia itself. This could prove to be another negative spot on the crypto community as a whole, the use of the technology to circumvent punishment and sanctions has been one of the main reasons why governments seek to actively regulate and monitor crypto.