IT Companies in Russia Urge for Cryptocurrency Payments in Software Exports

11 November 2022

When working for clients outside of Russia, Russian information technology (IT) companies want to be able to send and receive cryptocurrency payments. According to a plan provided to the Ministry of Digital Development, Communications, and Mass Media by the association of Russian software developers Russoft.

The association’s members lament the challenges they face while trying to receive cash from outside. Rugged sanctions that were put in place as a result of Moscow’s decision to invade Ukraine have severely restricted access to the global banking system for Russian enterprises. Additionally, Russoft is urging Russian authorities to loosen foreign exchange restrictions put in place as the war heated up.

According to the industry group, new payment options, such as cryptocurrencies, are required to reduce the impact of financial constraints and costs, the Russian business daily Vedomosti reported on Thursday. The study recommends the creation of test legal systems that would make the adoption of such mechanisms easier.

Lev Matveev, a member of the organization’s executive board, made the observation that the IT sector differs from many other companies when attempting to explain its interest in digital assets. According to him, the majority of the goods produced in the sector do not actually cross international borders, so they cannot be classified as commodities for international trade, which makes it difficult for the businesses to get around the regulations, as reported by the Russian cryptocurrency news outlet

The Bank of Russia initially advocated a broad ban on cryptocurrency-related activity, but eventually came to the conclusion—along with the Ministry of Finance—that the nation “cannot do without cross-border crypto payments.” The government has drafted a measure titled “On Digital Currency” to completely regulate the cryptocurrency industry, but MPs have not yet had a chance to evaluate it. A proposed law on mining that would permit the use of cryptocurrencies in international trade was also submitted to parliament around this time.

Russia has been considering cryptocurrency regulation for several months. Most government agencies, led by the central bank, concur that decentralised currencies, such as bitcoin, should not be accepted as a form of payment inside the Russian Federation, but pressure from sanctions has boosted support for the notion of allowing their use in international settlements.

Related news
China-Made Loongson CPUs Bound for Russia After Export Ban Lifted
India, Russia Discuss Cooperation in Areas of IT and Digitalization
Russian Legalization: The Ministry of Digital Development proposed to take money from companies that purchase foreign software and redirect it to the development of domestic software