Russia To Use Crypto Exchanges For Cross-Border Transactions

By Kevin • May 30, 2023 11:08 am • Comments

Russia has been changing a lot recently when it comes to how to approach cryptocurrency from a regulatory standpoint.

Just a few years ago, the country was very against the industry and had made calls to ban crypto within the region.

However, in recent times, it seems that the country is now starting to embrace cryptocurrencies again and there are plans to establish a framework for the operation crypto exchanges within the country.

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There was also a plan for the creation of one national crypto exchange, but it seems that the idea has been scrapped and that setting up a legal framework for exchanges is a better idea.

With this new idea, it was shared that these crypto exchanges could be used to settle cross-border transactions which could be a huge change.

Watcher.guru reports:

It was stated by Aksakov that the crypto exchanges would be utilized for cross-border settlements. According to the statement, these include bypassing sanctions while at the same time complying with the rules.

As stated by Aksakov, the central bank will oversee these crypto exchanges. Additionally, the draft law on experimental legal regimes will include the regulations.

According to Ivan Chebeskov, the director of the financial policy department at the Ministry of Finance of the Russian Federation, the ministry did not express support for the creation of a single national crypto-exchange.

Instead, there was a suggestion to consider legal regulations that would allow businesses to establish such platforms. He also shared with Izvestiya that the department has a strong belief that cryptocurrencies should be regulated comprehensively.

Of course, when it comes to cross-border settlements, the most popular option for that right now is XRP which has continued to expand globally as a popular network.

With crypto exchanges now possibly supporting cross-border settlements for Russia, this could add many use cases for XRP in the future.

Crypto regulation that is needed to support this is reportedly in progress and there are now two bills that may be ready by as early as June.

The country has been more and more involved with using crypto ever since Russia has been affected by sanctions as crypto has risen as an alternative financial system.

CryptoNews.com reports:

Exchanges then “be used to conduct cross-border settlements, including bypassing sanctions restrictions, so new restrictions may be introduced against them. At the same time, other organizations will constantly be able to appear, and the main thing is that they comply with the rules,” according to the news site.

Russia’s central bank would then probably regulate the exchanges, Aksakov told Izvestia.

This comes a few days after First Deputy Chairman of the Bank of Russia Ksenia Yudaeva said crypto assets have the power to “infect” the Russian Economy, according to domestic news agency Interfax.

But she conceded that it was “necessary” for Russian firms to “use cryptocurrencies in cross-border settlements.”

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