Mikhail Mishustin, Russian Prime Minister, ordered Government To set the rules on crypto regulation by the end of this year.
The date on which the Russian government is supposed to reach a consensus has been set for December 19, 2022.
The Prime Minister explicitly instructed the State Duma, as well as other state authorities, that there should be coordinated policies regarding the issuance and circulation of cryptocurrencies or digital currencies in Russia.
Not just issuing and trading, Mishustin also mentioned the requirements of regulations regarding crypto mining and cross-border transactions.
The draft cryptographic regulations must be synchronized with the Russian Ministry of Finance, the Central Bank, the anti-money laundering agency Rosfinmonitoring, the Federal Tax Service, as well as the Federal Security Service.
Just a week ago, Deputy Finance Minister Alexei Moiseev stated that the Bank of Russia had partnered with the ministry to allow cryptocurrencies for cross-border payments.
Russia is getting serious about encryption and its uses
The Russian government is supposed to have the regulations in place by the end of this year. The draft document must be ready no later than December 1, 2022.
This requirement by the Russian government highlights one aspect. This confirmation shows that Russia has begun to take matters relating to cryptocurrency with great importance, especially for cross-border transactions.
Russia’s position on digital assets has been somewhat polarized. It wants to authorize cross-border transactions while the Russian Central Bank remains against legalizing exchanges and giving digital assets as payment a green signal.
The idea of banning exchanges while allowing cross-border payments raised many questions, especially since Russia has not yet provided a framework that would provide laws related to the same.
How Russia plans to differentiate between domestic and cross-border payments is still being studied.
Russia happens to be the first country that has agreed to make cross-border payments but has yet to accept payments for domestic digital assets and exchanges.
Russia’s jurisdiction over digital assets remains ambiguous and uncertain, even after its adoption of the main crypto-related law in relation to digital financial assets in 2020.
This law prohibits Russians from using cryptocurrency as a means of payment, but it did not impose a ban on activities such as cryptocurrency trading and mining in Russia.
The financial regulators in Russia still did not approve any domestic digital asset trading platform, but only allowed the trading of digital assets through popular exchanges such as Binance.
This need to frame the regulations on cross-border payments because there must be simplification of access for foreign investors and exporters to the Russian financial market. A remote identification mechanism needs to be in place so that cross-border transactions take place without much hassle.