• Russia speculates that the implementation of new legislation should include crypto in international payments.

  • The regulators identify the necessity of launching regulatory measures to mitigate the risks of crypto transactions.

  • The new legislation is not expected to change Russia’s current ban on crypto trade within the nation.

Russia is fast-tracking a new crypto payments infrastructure to align with global powers using cryptocurrency for international trade. This move comes ahead of a parliamentary vote on cryptocurrency legislation, scheduled for review on July 23rd.

Russian regulators acknowledged the need for robust strategies to mitigate the risks inherent in crypto transactions. This development is particularly crucial as Russia has recently faced delays in international payments with key trading partners like China, India, the United Arab Emirates, and Turkey.

Yuri Chekhanchin, the head of Russia’s regulatory body, underscored the potential dangers of using cryptocurrencies for cross-border payments but asserted the regulator’s authority to block transactions deemed risky or non-compliant. Further highlighting the emergency of approving the legislation, he added:

“This is a need for businesses, especially in cases involving sanction mechanisms, when they need to enter the international market, and it can’t always be resolved through standard methods.”

In 2022, President Vladimir Putin signed a law banning the use of cryptocurrencies for payments within Russia. The country also plans to ban the internal operation of cryptocurrency exchanges. Several nations have already embraced cryptocurrencies for international trade, particularly as a means to bypass sanctions.

If approved, the new legislation is not expected to change Russia’s current ban on crypto trading within the nation. Instead, it envisions smooth international transactions via cryptocurrencies. 

Russia’s new initiative signals a potential shift in its stance on cryptocurrencies. In a nation grappling with international sanctions, the proposed legislation aims to facilitate international trade with Russia’s economy.

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