• The Russian tax administration has proposed the use of cryptocurrency as a foreign commerce payment mechanism

  • The proposal was “partially supported” by the Ministry of Finance, who added that it needed more thought.

    Russia’s Federal Tax Service (FTS) has entered the discussion over cryptocurrency legislation in Russia with an unexpectedly blunt proposal: allow Russian businesses to utilize digital currencies as a payment method when transacting worldwide.

    According to a local newspaper, the FTS provided official feedback on the draft crypto bill drafted by the Ministry of Finance on Wednesday. In its remarks, the fiscal agency advocated allowing Russian businesses to use cryptocurrency for certain operations:

    “To let corporate entities pay for goods and services according to foreign trade contracts and to receive revenue from foreign entities in digital currency.”

    The project has the potential to profoundly alter the ethos of the planned framework, which previously precluded digital currencies from any other role than that of investment assets. The current draft contains a phrase that states that the restriction on using cryptocurrency as a payment method is in effect “in all circumstances where this law does not stipulate differently.”

    The FTS proposed acting on this reservation in order to diversify payment choices available to Russian enterprises engaged in foreign trade in the face of the country’s severe financial restrictions.

    According to reports, the FTS also stated that businesses will be obliged to buy and sell digital currencies using regulated crypto wallets and exchange platforms.

    The Ministry of Finance left the “partially support” mark in response to the FTS’ feedback letter, stressing that the subject deserves further consideration and debate.

    The Russian Ministry of Finance prepared the draft bill titled “On Digital Currency” (commonly known as the “crypto bill”) on April 8 and submitted it to the government for approval. A week later, the president of Russia’s Chamber of Commerce and Industry proposed working with African countries to enable cross-border transactions in crypto and central bank digital currencies (CBDCs).

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