Russian Central Bank Only Plans to Legalize Cross-Border Cryptocurrency Transactions

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The Russian Central Bank opposes legalizing domestic cryptocurrency exchanges, conversions, and settlements, focusing solely on permitting cross-border transactions. This stance was clarified by the bank's press service in a September 5 statement.

Key Developments

Context

Earlier on September 5, Deputy Finance Minister Alexei Moiseev emphasized that Russia "cannot operate without cross-border cryptocurrency settlements" under current conditions. The Central Bank acknowledged this need but reiterated its restrictive approach to domestic use.

Regulatory Priorities

  1. International Trade: Enabling cryptocurrency for cross-border payments to circumvent sanctions.
  2. Domestic Restrictions: Banning local crypto exchanges and transactional platforms.
  3. Interdepartmental Alignment: Coordinating with other ministries to ensure cohesive policies.

FAQs

Q: Will Russia allow local cryptocurrency exchanges?
A: No. The Central Bank explicitly opposes legalizing domestic crypto transactions.

Q: How will cross-border crypto transactions work?
A: Details are under discussion, but the focus is on facilitating international trade, not local markets.

Q: Why is Russia prioritizing crypto for cross-border payments?
A: To mitigate the impact of financial sanctions and maintain trade flows.

Q: Are cryptocurrencies becoming legal tender in Russia?
A: No. Cryptocurrencies won’t be recognized as domestic payment instruments.

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