Russian tax authority proposes using crypto for international transactions

The Russian tax authority is advocating for the use of digital assets and cryptocurrencies as a tool in foreign/international trade. The same motion has been “partially supported” by the Finance Ministry, however, needs further consideration.
Russian tax authority proposes using crypto for international transactions
Russian tax authority proposes using crypto for international transactions

Russia’s Federal Tax Service (FTS) has weighed in on the discussion over cryptocurrency legislation in the country with an unexpectedly candid proposal: allowing Russian businesses to use digital currencies as a payment method when interacting internationally.

The FTS provided official feedback on the draft crypto bill drafted by the Ministry of Finance, according to the local newspaper Izvestia on April 20. The fiscal agency advocated in its remarks that Russian enterprises be allowed to use cryptocurrency for specific 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 radically alter the ethos of the planned framework, which previously prohibited digital currencies from serving any purpose other than as investment assets.

According to Izvestia, the current draft contains a phrase that states that the prohibition on using cryptocurrency as a payment method applies “in all circumstances where this law does not stipulate differently.”

In the face of significant financial restrictions imposed on Russia, the FTS proposed acting on this reservation to diversify payment methods available to Russian enterprises engaged in foreign trade.

Companies would also be forced to acquire and sell digital currencies using regulated crypto wallets and exchange platforms, according to the FTS.

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 completed the draft bill “On Digital Currency” (commonly known as the “crypto bill”) on April 8 and submitted it to the Russian government for approval.

A week later, the president of Russia’s Chamber of Commerce and Industry asked for collaboration with African countries to enable crypto and central bank digital currency cross-border transactions (CBDCs).