Russian authorities have been urged to allow crypto payments by companies developing software solutions to foreign customers. The proposal is part an array of measures designed to support IT exports that was suggested by an industry association to the Moscow executive.
IT businesses call on the Russian government to allow cross-border crypto settlements
Russian companies in the information technology sector (IT) want to be able to accept and make crypto payments when they work for clients outside Russia. That’s according to a roadmap prepared by Russoft, the association of Russian software developers, and sent to the Ministry of Digital Development, Communications and Mass Media.
According to Russian business daily Vedomosti on Thursday, the industry organization insists that alternative payment solutions, including cryptocurrency, are needed in order for financial restrictions to be reduced and costs to be lower. The document suggests the creation of experimental legal regimes to facilitate the adoption.
The association members complain about difficulties receiving payments from overseas. Russian businesses have had to deal with harsh sanctions imposed over Moscow’s decision to invade Ukraine which have severely limited their access to the global financial system. Russoft is also urging Russian authorities to relax foreign exchange restrictions that were placed amid the escalating conflict.
IT is different from many other industries, noted Lev Matveev, member of the organization’s executive board who tried to explain its interest in digital assets. Bits.media, a Russian crypto news outlet, quoted him saying that because most products in this sector don’t cross the border, they cannot be classified foreign trade commodities. This makes the currency controls impossible for the companies.
Russia has been contemplating how to regulate cryptocurrency for many months. Most government institutions, led by the central bank, agree that bitcoin should not be used as a payment method within the Russian Federation. However, sanctions have increased support for legalizing their use in international settlements.
In January, the Bank of Russia proposed a wide-ranging ban on crypto activities but later agreed with the Ministry of Finance that the country “can’t do without cross-border crypto payments.” The ministry has prepared a bill “On Digital Currency” to comprehensively regulate the crypto space which is yet to be reviewed by lawmakers. A draft law on mining, which legalizes the use of cryptocurrency in foreign commerce, was also filed in parliament.
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Alternative Payments, cross border payments, Crypto, cryptopayments, Cryptocurrencies. Cryptocurrency international settlements IT, IT companies, IT sector. Payments, Russia.
Do you think the Russian government will allow cross-border crypto payments in the IT sector? Comment below.
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
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