Russian logistics powerhouse ETE Group has formally petitioned Prime Minister Mikhail Mishustin to legalize and regulate the use of cryptocurrency for international settlements.
In a letter reported, ETE Group proposed that the Russian government develop a comprehensive legal framework that would allow businesses to conduct cross-border transactions using digital currencies.
The company emphasized that such regulation would include changes to the Civil and Tax Codes, as well as revisions to the federal law “On Currency Regulation and Currency Control.”
The move is seen as a response to growing demand from Russian companies, with interest in cryptocurrency payments increasing by approximately 40% in 2024 alone.
Sanctions Pressure Spurs Push for Crypto Adoption in International Trade
According to ETE Group, the initiative is driven by the increasing difficulty Russian companies face when making international payments, largely due to Western sanctions.
Financial restrictions imposed on Russian banks and institutions have created significant barriers, particularly in transactions involving countries like China and Kazakhstan.
The logistics firm noted that while payments to Chinese suppliers can take from five days to several months, those to Kazakhstan are increasingly delayed due to new rounds of sanctions.
These delays create operational inefficiencies for Russian importers and exporters who rely on timely settlement of international invoices.
Call for a Clear Legal Status and Oversight Mechanism for Crypto
ETE Group’s proposal calls not only for the recognition of cryptocurrency in foreign trade but also for the establishment of a defined legal status for digital assets.
The company urges the government to determine clear procedures for the issuance, circulation, and accounting of crypto assets, along with appointing a designated platform and state regulatory body to monitor and control such transactions.
While current laws allow Russian companies to buy, sell, and transfer cryptocurrency, using it directly to pay for goods and services remains prohibited due to the ruble’s status as the official national currency.
The legal gray area, according to ETE, places businesses in a risky position when attempting to use crypto for international payments.
Crypto Seen as Solution to Bypass Global Banking Barriers
The logistics firm stressed that the growing global scrutiny of transactions involving Russian entities, particularly by U.S. regulators, has begun affecting not just major international banks but also smaller, regional institutions, especially in China.
Even the slightest indication of a Russian link can result in payment rejection or delay, with funds often returned after weeks or even months.
ETE argues that legalizing crypto payments for cross-border trade would provide an effective workaround, allowing Russian companies to maintain business continuity amid tightening financial restrictions.
However, the firm cautions that without proper regulation, reliance on crypto carries significant risks, underlining the urgent need for state intervention to provide legal clarity and institutional support.
Also Read: Russia’s Rosseti Reports $14M Losses In 2024 Due To Illegal Crypto Mining
Broader Context: Russia’s Expanding Focus on Crypto Solutions
ETE Group’s proposal aligns with a broader shift in Russia’s approach to digital finance.
The Central Bank has recently signaled a willingness to explore crypto-based transactions to overcome economic isolation caused by Western sanctions.
Meanwhile, other crypto-related developments underscore the urgency for regulation.
The U.S. Treasury has sanctioned crypto wallets linked to Russia’s Garantex exchange in a crackdown on Houthi financing, demonstrating the geopolitical complexity of crypto involvement.
Additionally, the Russian government has unveiled a mechanism to convert seized cryptocurrencies into state revenue, further highlighting its growing interest in integrating crypto into official financial processes.
As economic pressures mount, digital assets are rapidly becoming a focal point of Russia’s evolving financial strategy.
Also Read: Russia’s Communications Watchdog Shuts Down Access to Nation’s Leading Crypto Aggregator Platform