Crypto Payments Are Acceptable in Foreign Trade

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Categories: Cryptocurrency

 

Crypto Payments Are Acceptable in Foreign Trade, Russias Financial Watchdog Says

The head of the agency, Yuri Chikhanchin, has indicated that Russian financial watchdog Rosfinmonitoring is ready to accept the use of cryptocurrencies in international settlements. The statement comes amid calls for the legalization of international crypto payments in Russia amid financial sanctions imposed over the invasion of Ukraine.

The Russian Federation's Federal Financial Monitoring Service, also known as Rosfin monitoring, fully acknowledges that cryptocurrencies can be employed for settlements with foreign partners, Yuri Chikhanchin, director of the regulatory body, has said. Speaking at the Federation Council, the upper house of the Russian parliament, Chikhanchin stressed that payments with digital assets inside Russia are prohibited by law.

The country's current law prohibits "money surrogates". Yuri Chikhanchin further emphasized that in order to take advantage of cryptocurrency payments, Russian companies need to know exactly who they are exchanging digital currencies with. The regulator revealed that their department has developed and already launched a specialized information system for tracking crypto transactions.

This allows financial authorities to identify both the sender and recipient of funds and has already been used in some investigations. The idea of ​​using cryptocurrencies in international settlements is gaining support amid mounting 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 indicated that it may support the legalization of crypto payments that do not enter Russia's financial system, the lower house of the Russian parliament recently adopted a law banning domestic payments with digital financial assets.

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