By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. August 14, 2024. Article no 1169

Picture : View on Moscow, 2024.

The Russian authorities have not yet come to a consensus on the legalization of crypto exchanges. The creation of such a platform is being discussed by the government and the Central Bank, Finance Minister Anton Siluanov said.

This was stated at the session of the forum “Territory of Meanings” by the Minister Anton Siluanov, answering questions from the meeting participants about the need to regulate digital finance in Russia.

Siluanov said that exporters and importers assure that banks from friendly countries charge about 1% commission for cross-border transfers, although previously they had to pay up to 7%.

In his opinion, such fee is not too expensive. But in any case, it is necessary to regulate the digital financial environment and make crypto exchanges legal, Siluanov stressed.

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“So far, they [crypto exchanges] are in the gray zone, and we need to put an end to it. Both the Central Bank and the government, represented by the Ministry of Finance, have not yet found a solution on how to do this,” the minister explained. But he promised to prepare a legislative decision in the fall. Siluanov also recalled that this year laws were adopted and signed on the legalization of mining and cryptocurrency payments for imports and exports.

The use of digital financial assets (DFAs) will reduce external pressure on international payments made by Russian participants in foreign economic activity, Siluanov stressed. Experts previously associated the slowdown in calculations primarily with the risk of secondary sanctions.

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Siluanov has expressed the need for a balanced approach that allows for the regulation of cryptocurrencies to enable their use in both domestic and international transactions. He believes that outright bans on cryptocurrency circulation are not feasible and that regulations should be established to facilitate their use for external payments, reflecting a pragmatic understanding of cryptocurrencies’ role in the global financial landscape

On December 22, 2023, US President Joe Biden issued a decree that allowed sanctions to be imposed on banks involved in transactions with Russia.

In addition to China, Russia’s main trading partner, barriers were also set by other states that have served as key settlement hubs for Russia since 2022: Turkey, the UAE, Kazakhstan and Kyrgyzstan. “We have made great progress: pay with bitcoins – please, the use of DFAs (including foreign ones) in cross-border settlements – too. The only question is the exchange,” the minister concluded.

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The Russian law on the legalization of crypto mining was adopted earlier in August by the State Duma. It will come into force on November 1. From September 1, it will be allowed to carry out cross-border settlements and exchange trading in cryptocurrency.

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© Copyright 2024 – Eurasia Business News. Article No. 1169.