Swann Collins, investor, author and international affairs consultant – Eurasia Business News. August 14, 2024. Article No. 1169
In the photo: View of Moscow in 2024.
Russian authorities have yet to reach an agreement on legalizing cryptocurrency exchanges, with the creation of such platforms being discussed by the government and the central bank, Finance Minister Anton Siluanov said.
This was stated by Minister Anton Siluanov at the session of the “Sphere of Meaning” forum, answering questions from conference participants about the need to regulate digital finance in Russia.
Siluanov said exporters and importers have assurances that banks in friendly countries will charge around 1 percent commission for cross-border transfers, whereas previously they had to pay fees of up to 7 percent.
Siluanov believes that such fees are not too high, but in any case, he stressed the need to regulate the digital financial environment and legalize cryptocurrency transactions.
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“So far, they [crypto exchanges] “It's in a grey area and we need to put an end to it. Neither the Central Bank nor the government, represented by the Ministry of Finance, have yet found a solution to do this,” the minister explained. However, he promised to prepare a legislative decision by autumn. Minister Siluanov also recalled that this year a law on the legalization of mining and cryptocurrency payments in imports and exports was adopted and signed.
Siluanov stressed that the use of digital financial assets (DFAs) would reduce external pressure on international payments by Russians participating in external economic activities. Until now, experts have primarily associated the slowdown in payments with the risk of secondary sanctions.
Siluanov expressed the need for a balanced approach to regulating cryptocurrencies to allow their use in both domestic and international transactions. He believes that a complete ban on cryptocurrency circulation is not realistic, and that it is necessary to practically understand their role in the international financial environment and establish regulations that will facilitate their use in foreign payments.
On December 22, 2023, US President Joe Biden issued an executive order authorizing the imposition of sanctions on banks involved in transactions with Russia.
Barriers have been erected by China, Russia's main trading partner, as well as by Turkey, the UAE, Kazakhstan, Kyrgyzstan and other countries that will become important payment hubs for Russia from 2022 onwards.We have made great progress, with Bitcoin payments and also with the use of DFAs for cross-border payments (including foreign ones), the only problem is exchange.” the Minister concluded.
The law on legalizing cryptocurrency mining in Russia was adopted by the Russian State Duma in early August. The law will come into effect on November 1. Cross-border settlement and exchange transactions of cryptocurrencies will be permitted from September 1.
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© Copyright 2024 – Eurasia Business News. Article No. 1169.
