Both the Central Bank and the Ministry of Finance are working hand in hand to draft the necessary bylaws to regulate these payments. This collaboration aims to finalize a regulatory framework by the end of November, ensuring that companies using cryptocurrencies for cross-border crypto payments have a clear legal structure to operate within.
“We are working diligently to finalize the regulations by November,” Aksakov added. The Central Bank and Ministry of Finance plan to expand the scope of participants gradually, allowing a phased and monitored rollout of cross-border crypto payments. Initially, only a select group of credit organizations will participate, but the number will grow as the system matures.
Additionally, the new regulations will define how individuals and organizations can engage in cross-border crypto payments, ensuring that the rules provide clear guidelines for compliance. This regulatory push is seen as a significant step toward making cryptocurrency a legitimate and secure option for cross-border transactions.
Disagreements Between Central Bank and Ministry of Finance
Despite the collaborative effort, there have been reports of disagreements between the Central Bank and the Ministry of Finance, particularly regarding the creation of crypto exchanges within Russia. According to Bloomberg sources, the Central Bank has expressed concerns over the broader adoption of cryptocurrency within the country, especially given the potential risks associated with unregulated exchanges.
However, the focus remains on cross-border crypto payments, with both institutions agreeing that cryptocurrencies will not be recognized for domestic payments. Aksakov was clear in his stance: “Russia will not recognize cryptocurrency as a means of payment within the country,” a sentiment echoed by the Central Bank in its opposition to crypto exchanges for local use.
This restriction reflects the cautious approach Russia is taking—allowing cryptocurrencies to facilitate international trade while tightly controlling domestic adoption. The country’s approach underscores the geopolitical implications of cross-border crypto payments as a tool for circumventing international sanctions and reducing dependency on traditional financial systems.
Cross-Border Crypto Payments Within the MIR Payment System
Russia’s MIR payment system, initially designed to reduce reliance on Western financial networks, will play a critical role in facilitating cross-border crypto payments. According to sources, the integration of cryptocurrencies into the MIR system is seen as a strategic move to bypass international sanctions, allowing Russia to conduct foreign trade despite economic pressures.
This system will be the backbone for cross-border crypto settlements, offering Russian businesses an alternative to SWIFT and other international payment systems. Aksakov confirmed that the use of digital assets would be restricted to cross-border crypto payments, ensuring that the domestic economy is not overexposed to cryptocurrency volatility.
Experts see this as a pivotal moment for Russia’s financial sovereignty. By integrating cross-border crypto paymentsinto the MIR payment system, Russia is not only positioning itself as a player in the global cryptocurrency market but also safeguarding its financial independence.
The Role of Companies in Cross-Border Crypto Payments
Several companies in Russia are already leveraging cryptocurrencies for cross-border transactions, with estimates suggesting that billions of dollars are being traded using this mechanism. These early adopters provide valuable insights into how the system works and what regulatory challenges may arise.
By allowing these companies to operate under the EPR, the government can monitor the flow of cross-border crypto payments closely and identify areas for improvement. Aksakov stressed that the phased approach would ensure that regulations are developed in response to real-world challenges, thus offering a safer and more efficient system for all participants.
As Russia moves toward fully regulating cross-border crypto payments by November, the world watches closely. The new framework promises to reshape international trade for Russian businesses while protecting the market from fraud and misuse. The phased rollout, combined with the government’s focus on security, positions Russia at the forefront of crypto innovation in cross-border trade.
By restricting the use of cryptocurrencies to international payments only, Russia is safeguarding its domestic market while capitalizing on the efficiency and transparency offered by blockchain technology. Cross-border crypto payments are becoming an integral part of Russia’s foreign trade strategy, with the country aiming to create a secure and regulated environment for these transactions by November. The Bit Gazette has the latest crypto news and expert analysis.
