Russia plans new rules for cross-border crypto payments by November

Russia's new law allowing the use of cryptocurrency for foreign trade came into effect on September 1, but full regulation is still pending. 

Anatoly Aksakov, Chairman of the State Duma Financial Market Committee, announced that the Central Bank and the Ministry of Finance are working on bylaws to regulate cross-border crypto payments. 

These regulations are expected to be finalised by November.

Initially, the use of cryptocurrencies will be limited to select banks and financial institutions under an experimental legal regime. 

This phased approach aims to reduce risks and develop a framework to prevent fraud. 

Aksakov mentioned that some companies are already using cryptocurrency for cross-border transactions, with estimates in the billions of dollars. 

He stressed the need to limit the number of participants in these transactions initially to better understand the market and formulate effective regulations.

“It’s important to safeguard the market from unscrupulous participants,” Aksakov stated, emphasising that while cryptocurrency can be used to purchase essential goods, it has also been misused for buying weapons and drugs.

The Central Bank and the Ministry of Finance are drafting regulations that will outline the rules for cross-border crypto payments and specify which entities can participate in this phase. 

As the market matures, more participants and trading platforms are expected to be introduced. 

However, the use of digital assets will be strictly limited to foreign trade activities.

Aksakov also clarified that cryptocurrency will not be allowed as a means of payment within Russia. 

“Cryptocurrency as a means of payment within the country should not be allowed. It will only be used for foreign trade transactions, and this process must be regulated," he explained, adding that cryptocurrencies should be managed similarly to foreign currencies.