Russia’s Federal Tax Service Advocates for Crypto Payments in International Trade

The FTS Takes a Stand

In a surprise twist that has left many scratching their heads and others cheering, Russia’s Federal Tax Service (FTS) has jumped into the crypto conversation with both feet. Rather than maintaining the status quo regarding digital currencies, the FTS has proposed something that might just turn heads – letting Russian companies use crypto for international transactions.

A Shift in the Financial Landscape

According to Izvestia, a local newspaper that clearly understands the pulse of the nation, the FTS delivered its feedback on the draft of the crypto bill prepared by the Ministry of Finance. This bill was initially limited in its ambitions, focusing solely on treating digital currencies as investment assets. However, the FTS is suggesting we need to loosen the reins:

• Allow corporate entities to pay for goods and services related to foreign trade contracts using crypto.
• Enable companies to receive payments from foreign entities in digital currencies.

This proposal could fundamentally reshape how digital currencies are viewed in the business ecosystem of Russia. Instead of being decorative investments, they might just step into the limelight as functional payment methods.

Responding to Sanctions

The motivation behind this bold proposal is clear: amidst the ocean of sanctions facing Russia, diversifying payment options is not just a desire but a necessity. The FTS understands that alternative methods could provide critical relief to companies trying to navigate international waters.

Rules of Engagement

However, it’s not a free-for-all. The FTS has indicated that if this proposition moves forward, companies will need to engage with regulated crypto wallets and exchange platforms to buy and sell digital currencies. Think of it as ensuring everyone washes their hands before dinner, just to keep things neat and tidy.

Ministry of Finance’s Cautious Footwork

The Ministry of Finance has given a lukewarm thumbs up to the FTS’s ideas, labeling its stance as “partially support.” Translation: they’re not entirely convinced yet, and further discussions are necessary. Perhaps they need to schedule a few more coffee breaks to sort this out.

What Lies Ahead?

As of April 2023, the proposed framework titled “On Digital Currency” is in the governmental approval stage. Meanwhile, other sectors are also eyeing the potential of cryptocurrency, with calls emerging from the Chamber of Commerce to collaborate with African nations for cross-border crypto transactions. Could this lead to a thrilling blockchain partnership? Only time will tell!