Russia approves cross-border crypto payments

After a long dispute between the Finance Ministry and the Central Bank, Russia allows cross-border payments with cryptocurrencies.

After a long dispute between the Finance Ministry and the Central Bank, Russia now allows cross-border payments with cryptocurrencies.

In Russia, the Finance Ministry and the Central Bank reached an agreement on a bill that would enable cross-border crypto payments. This was reported by the Moscow daily Kommersant, citing statements from Deputy Finance Minister Alexei Moiseyev.

According to the report, it's still unclear when the document will be voted on.

As part of legalization, the bill would allow Russian citizens to buy cryptocurrencies and access crypto wallets. The central bank would oversee providers. "Currently, people are opening crypto wallets outside the Russian Federation," Moiseyev explains. This is intended to give Russia more control and transparency over the sector.

Russia Goes Crypto — New Sanctions Possible?

In fact, the upcoming legalization of cross-border crypto payments is just one of the many steps Russia has been willing to take regarding Bitcoin and the rest since the invasion of Ukraine. The country has set new tax rules for cryptocurrencies, is exploring blockchain-based alternatives to the SWIFT system, and is currently weighing the legalization of Bitcoin mining. Domestic payments with the digital currency remain illegal for now.

The growing push toward crypto won't come without consequences. After President Putin ordered a partial mobilization of 300,000 reservists, the European Union extended the current sanctions by six months and announced an eighth package of measures. It’s likely the alliance of states will focus more on crypto, for example by banning mixing service providers.

Earlier, the U.S. had already imposed new sanctions on the Kremlin. The U.S. Treasury has put 22 Russian officials and two organizations on the blacklist. Among them was a paramilitary neo-Nazi militia that actively participated in the fighting in Ukraine.