The Central Bank and the Ministry of Finance have yet to agree on how to regulate cryptocurrency, despite the fact that the Russian government wants to use it for international payments.
In an effort to thwart the effects of Western sanctions, Russia is exploring using cryptocurrency for international payments.
A top official in Russia’s finance ministry indicated that the country is actively considering the use of cryptocurrencies for foreign payments.
Cryptocurrency settlement might help Russia resist the effect of Western sanctions that have restricted its access to conventional cross-border payment channels, according to Chebeskov.
As a result, the crypto market and the usage of digital currencies in Russia are now being intensively regulated by Russian authorities. The Central Bank and the Ministry of Finance each take a different strategy for policing the cryptocurrency market.
According to Russia’s Central Bank, cryptocurrency trade and mining represent a danger to the country’s financial stability. The Finance Ministry, on the other hand, proposes developing laws that discriminate between white and grey markets.
The Central Bank and Finance Ministry must first agree on how to control the crypto market before the government can begin utilising crypto for payments. Talks have been going on for months, but nothing has come of them yet.
Despite Western sanctions, Russia’s economy continues to collapse
With its economy in freefall, Russia is considering using cryptocurrency as a form of payment. Western sanctions, implemented by the United States and the European Union after Russia invaded Ukraine, are to blame for the fall.
While Russia aims to utilise crypto to counteract the effects of Western sanctions, Binance CEO Changpeng Zhao claimed Russia cannot dodge sanctions using crypto. Cryptocurrency, in his opinion, is unsuited for evading sanctions since it is too easily tracked.
There is no ban on Russians utilising crypto exchanges, but recent clampdowns have made it more difficult for them to do so. According to Binance’s announcement, Russian individuals and organisations with cryptocurrency holdings of more than $10,885 will no longer be able to use the site. As a result of the restrictions, Coinbase has also announced that it would cancel certain Russian accounts.