MOSCOW — Russia’s Ministry of Finance of the Russian Federation and Central Bank of the Russian Federation (CBR) announced on Tuesday that they have reached an agreement to legalize the use of cryptocurrencies for international trade.
Finance Minister Anton Siluanov revealed during a strategic economic meeting that the move is aimed at bringing order to a digital-asset space that has operated largely outside established regulation. He said: “We believe that this area should be legalized and its activities regulated by legislation.”
What exactly is changing?
- Under the agreement, companies in Russia will be able to use crypto assets for cross-border payments — that is, to settle international trade transactions using cryptocurrencies.
- Domestic payments in crypto (within Russia, between Russian residents) remain prohibited under this agreement as of now. (Previously, retail payments in crypto were banned by the CBR. )
- Implementation and oversight will be handled by the Central Bank in cooperation with the federal financial monitoring agency Federal Financial Monitoring Service of Russia (Rosfinmonitoring). The aim is to bolster supervision and prevent illicit financial flows.
- No specific timeline was announced by the ministry or bank for when the legal framework will come fully into force — only that the legislative work will begin.
Why now?
Russia says it has been under mounting pressure from Western sanctions since its 2022 invasion of Ukraine, which has made conventional trade and payment channels more difficult. Using crypto for trade is being presented as a way to navigate around some of those constraints.
Also, Russia has already experimented with using digital assets in exports, and now the government appears ready to move beyond experimental status. Finance Minister Siluanov highlighted that crypto is not just for payments, but also for transferring funds abroad.
What are the risks and implications?
- Regulatory risk: While legalization for trade is a big step, the details matter. Without strong rules, oversight and compliance, risks such as money-laundering, evasion of sanctions or capital flight may increase. The ministry’s emphasis on oversight signals awareness of that.
- Counter-party risk: For Russia’s trade partners, accepting crypto payments may introduce uncertainty — both from currency/asset volatility and from regulatory or reputational risks in dealing with Russian entities under sanctions.
- Impact on domestic market: While this move lifts a key restriction (crypto for foreign trade), it leaves the domestic payments ban intact. That tension (external liberalisation vs internal caution) will likely matter to investors and businesses inside Russia.
- Sanctions landscape: By enabling trade in crypto, Russia may attempt to lessen dependency on the US dollar or euro. But other countries and institutions will still face scrutiny under Western sanction regimes, which could complicate or limit actual adoption.
- Legal and tax framework: The ministry says legislation will follow. How taxes, declared assets, auditing and legal liability (for misuse of crypto) are defined will shape how effective the system is.
What still isn’t clear?
- The exact start date for when crypto payments in international trade will be allowed.
- Which cryptocurrencies will be permitted (Bitcoin, other major coins, stablecoins?).
- How Russia will monitor and enforce compliance across borders, given the relative anonymity of some digital assets.
- How trade partners (especially non-Western) will respond to this change in payment terms.
- The scale of trade expected to shift to crypto — whether it will be niche or mainstream in Russian foreign trade.
Russia is taking a calculated step: it is opening up the use of cryptocurrencies for foreign trade, while keeping domestic payments tightly controlled. It’s a signal that the country wants to adapt to new financial technologies and the realities of sanctions, without relinquishing regulatory control. The success of this move will depend heavily on the rules and infrastructure that are built around it.
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