The Russian Ministry of Finance and the Bank of Russia have reached an agreement to legalize cryptocurrency for cross-border settlements, according to Finance Minister Anton Siluanov.
“We believe this instrument should be legalized and the sector needs a proper legislative framework,” the minister stated. “To that end, we will work with Rosfinmonitoring and other regulatory bodies to bring this area into compliance and ensure it is properly regulated.”
Siluanov identified cryptocurrency payments as a significant future focus, noting that while crypto facilitates cross-border transactions, it can also be used to move capital out of the country. Therefore, he emphasized that alongside legalization, it is essential to strengthen regulatory oversight.
This development follows a law enacted in September, which permits cryptocurrency exchange trading and cross-border settlements under Experimental Legal Regimes (ELR). Under this law, the Central Bank is tasked with designating the organizations that will operate as trading platforms. It must also specify the cases where an ELR program requires approval from Rosfinmonitoring, the FSB, and the Ministry of Finance.
“The Central Bank has maintained a clear and uncompromisingly negative stance on cryptocurrencies for decades, while the Ministry of Finance has been more neutral. This makes the strategy reversal particularly significant,” said Sergei Khestanov, an economist and associate professor at RANEPA. “The shift appears to be a response to expectations of further complications in international transactions. In this context, cryptocurrencies could be used to circumvent potential restrictions.”