Russia to Realize Cryptocurrencies as Legal Payment


  • Russian Ministry of Finance is on its way to publish a bill to legalize cryptocurrency.
  • Owing to the Russia-Ukraine conflict, the demand for cryptocurrencies in Russia has outgrown.
  • Foreign firms have to obtain a license from the authorities and create offices in Russia.

Kommersant, in its report has disclosed an interesting update from the Russian Ministry of Finance. As per the news, the Ministry has completed a bill signifying legalization of crypto payments in the country. The document was acquired by the regional news site and confirmed by two various sources.

Russian residents as well as crypto investors can now have a clear picture about digital mining and digital assets. The document features a number of unknown aspects related to Russian regulation. One such aspect is the digital currency category.

Among these aspects is the classification of digital currency, the legal structure for its issuance and authorized circulation in Russia, trading, accreditations and more. As per Kommersant, in order to trade the cryptocurrencies, obtaining permission is a must for the Russian entities. Moreover, they must adhere to a detailed identification process.

The local media mentioned:

“According to the draft law, digital currency can be accepted as a means of payment that is not the monetary unit of the Russian Federation, as well as an investment, while there must be no obligated person in relation to it”. 

A minimum capital is mandatory for the crypto platforms to offer their services in Russia. For the exchange operators, the amount set is $40,000; whereas, for the digital trading platforms, this amount is $100,000.

Authorizing a stringent process to remain certified with the Russian policies is important for the entities. Having said that, to offer services in Russia, a crypto exchange has to complete the process and obtain a license from a recognised body that is appointed by the Russian government. Also, an intact control and management of users’ data is something exchanges must fulfil.

Russia will legalize crypto for payments. Surprise surprise.

— CZ  Binance (@cz_binance) April 15, 2022

Reasons that Might Hamper the Russia Crypto Payment Law

Small companies can face troubles with the above. Moreover, issues are possible for the secrecy of crypto investors in the country. Saving and updating users’ data regularly is crucial as well.

According to Kommersant, only Russian entities can offer their services. If foreign exchanges want to offer their services, they must obtain a license of operations and for that they must create a business entity in Russia.

Russian natives can trade cryptocurrencies on international exchanges. The Russian regulators believe that their KYC policies suffice to provide the local authorities with their information. Quoting Andrey Tugarin, managing partner of law firm GMT Legal, the media outlet added:

“It will be impossible to sell or buy digital currencies without passing identification. The operator will be able to deposit and withdraw fiat currencies only through banks using a bank account”.

Despite looking like a great step for country’s crypto users, Russian entities have raised certain concerns. According to them, the document lacks key subjects.

On that note, the law can be ignored and people can rely on international exchanges or the black market. With Russia hoping to create a nationwide registry for the sector, miners will be bound to follow the same process as traders.

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