Crypto payments are acceptable in foreign trade, says Russia’s financial watchdog – Regulation Bitcoin News

The Russian finance watchdog Rosfinmonitoring is ready to accept the use of cryptocurrencies in international settlements, the head of the agency, Yuri Chikhanchin, has indicated. The statement adds growing support for the legalization of international cryptocurrencies in Russia amid economic restrictions imposed over the invasion of Ukraine.

Top financial regulator in Russia welcomes international cryptocurrencies

The Russian Federation’s Federal Financial Monitoring Service, also known as Rosfinmonitoring, fully accepts that cryptocurrencies can be used for settlement with foreign partners, said Yury Chikhanchin, director of the regulatory body.

In a speech to the Federal Council, the upper house of the Russian parliament, Chikhanchin stressed that payments with digital assets in Russia are prohibited by law. The country’s current legislation prohibits “money surrogates”.

But under certain conditions, such payments may well be used in international trade, Chikhanchin said. The senior official believes this can help companies oriented towards exporting Russian products. Quoted by Bits.media cryptony news outlet, he also noted:

If the supply chain is controlled, this is quite acceptable.

Yury Chikhanchin further stressed that in order to benefit from cryptocurrency payments, Russian companies need to know to whom they are exchanging digital currencies.

The regulator revealed that his department has developed and already launched a special information system for tracking crypto transactions. It enables the financial authorities to identify both the sender and the recipient of funds and has already been used in some surveys.

The debate about the future of cryptocurrencies in Russia is still ongoing. A new bill “On Digital Currency” is expected to introduce more comprehensive rules for crypto transactions after the law “On Digital Financial Assets” only regulated some aspects of the crypto market.

The idea of ​​using cryptocurrencies in international settlements has gained support under increasing Western sanctions over Russia’s military intervention in Ukraine. At the same time, most government institutions in Moscow agree that the ruble should remain the only legal tender in the country.

While the Bank of Russia, a strong opponent of the free circulation of cryptocurrencies, recently signaled that it could support the legalization of cryptocurrencies that do not penetrate Russia’s financial system, the lower house of the Russian parliament recently passed a law banning domestic payments with digital financial assets.

Do you think the Russian government will allow local companies to use cryptocurrencies for international payments? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a technology expert from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.