Russia to Begin Crypto Exchange Trials on September to Combat Sanctions and Facilitate Cross-Border Payments

• Russia to test crypto exchanges for cross-border payments, using the National Payment Card System starting September 1.
• New laws in Russia legalize crypto mining and cross-border token payments, with potential crypto platforms launching next year.
• International sanctions push Russia to explore cryptocurrency as an alternative payment method to ease business transaction difficulties.

Russia is set to begin trials of cryptocurrency exchanges on September 1, aiming to help businesses navigate increasing payment difficulties. The trials will use the National Payment Card System to swap between rubles and cryptocurrencies, addressing hurdles that stem from international sanctions. The plan comes as Russia seeks alternative methods for cross-border payments, especially as businesses struggle to pay overseas suppliers and receive payments for exported goods.

Russia’s Crypto Exchange Trials

The Russian government has chosen the National Payment Card System for these trials due to its existing infrastructure. This system, created by the central bank in 2014, already manages Mir cards and instant interbank payments. 

Officials selected it for its established mechanisms like interbank settlement and clearing, ensuring regulated testing of cryptocurrency exchanges. If the trials prove successful, the Moscow Exchange and St. Petersburg Currency Exchange could be allowed to set up crypto platforms as early as next year. Any existing cryptocurrency can be used for these experiments, allowing flexibility during testing.

Crypto Mining and Legal Framework

In July, Russia’s parliament passed legislation that legalized crypto mining and created a framework for using digital tokens in cross-border payments. President Vladimir Putin signed these bills into law on August 8, officially setting the stage for the upcoming trials. 

However, while Russia has taken steps to legalize these exchanges, Finance Minister Anton Siluanov acknowledged on August 14 that authorities are still determining the best way to structure them. His remarks indicate that Russia continues to explore how to fully implement cryptocurrency exchanges in a way that complies with regulatory requirements.

International Sanctions and the Shift to Crypto

This shift toward cryptocurrency follows few international sanctions that have impacted Russia’s financial system. Notably, a U.S. decision in June expanded the scope of sanctions, complicating business transactions with foreign banks that work with Russia. 

These sanctions have made it difficult for Russian companies to operate in the global market, increasing the need for alternative payment methods. The trials reflect Russia’s attempt to ease payment difficulties while adapting to the changing global financial sector.