Russian Official Says Account Will Give Businesses Latitude in Using Crypto Internationally

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An official from Russia’s Ministry of Finance has provided new details about a digital currency bill currently being drafted.

The bill provides local infrastructure for settlements and regulation of mining, but leaves many details up to companies to work out for themselves, Ivan Chebeskov, head of the Finance Ministry’s Department of Finance, said during a roundtable meeting hosted by the International Chamber on Monday. of Commerce Russia in Moscow. Interfax quoted Chebeskov as saying:

“It’s not entirely clear how it should be regulated, so we’re giving companies with this account the ability to pay with cryptocurrency, but in terms of what cryptocurrencies will be used, how to negotiate with counterparties, what countries it will operate with – We leave all this to entrepreneurs.”

On September 13, Russian Prime Minister Mikhail Mishustin ordered the Ministry of Finance, the Central Bank of Russia, the Federal Tax Administration, the Federal Financial Control Service or Rosfinmonitoring and the Russian Federal Security Service (FSB) to reach a consensus by December 19 on legislation that would regulates the issuance, circulation, mining and use of cryptocurrency in international settlements. The Prime Minister’s instruction did not extend to the domestic use of crypto.

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Chebeskov said the Ministry of Finance and the Central Bank started new discussions about cryptocurrency regulation in response to that order and that several texts of the bill currently exist. Mining was discussed separately and the agencies’ “vision” of mining is “more similar” than settlements.

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The Ministry of Finance and the Central Bank have long been in disagreement over the proper place of cryptocurrency in the Russian economy, with the Central Bank initially strongly opposing the use of cryptocurrency for payments. However, the bank’s position slowly deteriorated as the sanctions imposed in February following Russia’s invasion of Ukraine began to take their toll.

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An announcement on Sept. 5 indicated that after much deliberation, the Central Bank may be ready to approve the use of crypto in international trade. Mishustin spoke positively about the use of cryptocurrency in international trade after Iran approved the use of crypto for import payments.