Russia announces plan to embrace cryptocurrency for international trade in 2023

Russia announces plan to embrace cryptocurrency for international trade in 2023

  • Russian Prime Minister Mikhail Mishustin instructed the government to come to a consensus on crypto regulation by December 19. 
  • Russia is ready to align crypto regulation with anti-money laundering directives, growing increasingly serious about the use of crypto in cross-border transactions. 
  • The recent move makes Russia the first country in the world to authorize cross-border crypto payments while local crypto payments are banned. 

The Russian Prime Minister has officially called on the Duma and other Russian state authorities to come up with coordinated policies on regulating the issuance and circulation of cryptocurrencies in the country. 

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Russia prepares for cross-border payments in cryptocurrencies

Mikhail Mishustin, the Russian Prime Minister has officially instructed the government to come to a consensus regarding cryptocurrency regulation and set a deadline of December 19, 2022. Mishustin stressed the need for a draft of crypto regulations aligned with the central bank’s anti-money laundering policies. 

Deputy Finance Minister Alexei Moiseev reported that the Bank of Russia is in agreement with the Finance Ministry to legalize cross-border crypto payments. Despite Russia’s intent to legalize cross-border crypto payments, the central bank remains opposed to the idea of local crypto payments. This has raised questions in the crypto community as cross-border payments in domestic digital-asset exchanges remain banned. The Russian government is yet to come up with a framework to implement such laws. 

Maria Agranovskaya, a Fintech expert and legal attorney at the Russian State Duma told Cointelegraph in an interview, 

This isn’t a common approach, to my knowledge.

Russia’s move to adopt crypto for cross-border transactions makes it the first country to adopt crypto for overseas settlements and keep it banned for domestic exchanges. 

In late 2021, the concept of using cryptocurrencies as a form of payment became relevant. Vladimir Putin, the Russian President remarked that the use of cryptocurrencies for trading of energy resources, oil and gas is “still premature.” However, post Russia’s invasion of Ukraine, the situation has changed and the focus has shifted to cryptocurrencies as a result of sanctions and economic penalties imposed on the country from the West. 

Russia’s adoption of cryptocurrencies is likely to fuel demand for cryptocurrencies used for cross-border payment settlement. Ripple (XRP), Tron (TRX), stablecoins (USD) and Tether (USDT) among others are the top choices for cross-border payment settlement. 

Analysts reveal strategy to navigate crypto bear market

While anticipation surrounding Ethereum Merge grows, there is a risk-off sentiment prevalent among crypto holders. Bitcoin, Ethereum and other cryptocurrencies have witnessed a steep decline in their price and $69 billion was wiped off the entire crypto market, recently. 

Until a catalyst like Russia’s adoption of crypto for cross-border settlement or successful completion of Ethereum’s Merge kicks in, traders have to navigate the bear market. Analysts at FXStreet revealed key tips to ensure profitable trades in such a scenario. For more information, key assets and price levels to watch out for, check the video below:

 

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