Russian news agencies had reported that the central bank had discussed the issue of cross-border crypto payments with government officials. However, according to reports, the Bank of Russia has refused to allow crypto exchanges to operate legally and not to accept cryptocurrency as legal tender. Russia has had a mixed relationship with crypto. In 2020, the country passed a law banning the use of cryptocurrencies, including Bitcoin (BTC) for payments. President Vladimir Putin also signed a law in July banning digital financial assets as payments. In May, Commerce Minister Denis Manturov suggested that Russia would legalize crypto payments „sooner or later.“ The situation seems to have changed in light of Western economic sanctions following the Russian invasion of Ukraine. In May, the Minister of Industry and Trade said that Russia would legalize crypto payments „sooner or later.“ Bank of Russia Governor Elvira Nabiullina also later suggested that crypto can be used for cross-border payments, but only if crypto does not enter the Russian national financial system. The mandate is the result of long discussions between the Central Bank of Russia and the government on cryptocurrencies. In addition, the promotion retains the ruble as the only legal tender in the Russian Federation. Russian lawmakers have opposed the idea of using cryptocurrencies as a payment method in the past. In 2020, Russia passed a major crypto law „On Digital Financial Assets“ that officially prohibits the use of cryptocurrencies such as Bitcoin (BTC) for payment purposes. The Bank of Russia was skeptical about the idea of cryptocurrency payments because it wanted to protect the Russian ruble as the only legal tender in the country. Manturov was asked on a forum if he thought cryptocurrencies would become legal as a means of payment.

According to TASS, the two government agencies agreed that it was „impossible“ to proceed without activating cryptocurrency as a legal payment method for international trade. The Bank of Russia later clarified that it still opposes the legalization of crypto payments in the country, although it has given the green light to cross-border payments. „It is important to emphasize that we are not talking about the legalization of cryptocurrency as a means of payment on the territory of our country,“ the central bank said in a statement to local news agency RIA Novosti. The bill treats crypto as an investment tool, not legal tender, and states that cryptocurrencies cannot be used to pay for goods and services. It also sets out requirements for cryptocurrency exchanges and OTC offices that must meet certain criteria in order to obtain a license and be included in a dedicated government registry. Foreign crypto exchanges must register legal entities in Russia to provide services in the country. May 18 (Reuters) – Russia will sooner or later legalize cryptocurrencies as a means of payment, Industry and Trade Minister Denis Manturov said on Wednesday, hinting that the government and the central bank could move closer to settling their differences. According to Moiseev, the central bank has reconsidered its approach to regulating the industry „as the situation has changed.“ He added that the planned infrastructure is „too rigid“ for the use of cryptocurrencies in cross-border settlements.

„Which we certainly need to legalize one way or another,“ he concluded. Since January 1 last year, cryptocurrencies are legal in Russia, but cannot be used to buy goods or services. Industry and Trade Minister Denis Manturov said Thursday that Russia will legalize cryptocurrencies as a means of payment „sooner or later,“ suggesting that the government and central bank could get closer to a solution. „Because now, those who trade their digital currencies on crypto exchanges are limited,“ Chebeskov continued. „Second, control when digital currency is used legally and when it is not.“ Russia`s central bank has reconsidered its approach to crypto regulation and agreed with the Finance Ministry to legalize crypto for cross-border payments, local media TASS reported Monday. The move comes as Russia tries to figure out how best to regulate the bitcoin and cryptocurrency markets. The world`s largest country, awash with Western sanctions, has been looking for alternatives to the United States. dollars to ensure efficient trade in its raw materials. Moiseev stressed the importance of enabling local crypto services in Russia, noting that many Russians rely on foreign platforms to open a crypto wallet. „It is necessary to do this in Russia, involving companies supervised by the central bank and obliged to comply with anti-money laundering and know-your-customer requirements,“ the official explained. Aave, which has been closely watched by TradFi players since partnering with Wall Street firms earlier this year, has a parameter issue The Bank of Russia, the country`s central bank, has reportedly admitted that cross-border crypto payments are inevitable in the current geopolitical conditions.