Russian Finance Ministry States Cryptocurrency Debit Cards Are Legal in the Country
Alexei Moiseev, the Russian Deputy Finance Minister was quoted by local Russian media saying that using crypto cards to pay for products or services rendered does not contradict the local laws in any way. Alexei believes that such transactions are legal in nature, as the merchant gets to receive the money in form of Russian rubles.
Using A Crypto Card To Purchase Coffee Is Not Illegal
During the recent Gaidar economic forum, Moiseev admitted that the Ministry of Finance in Russia often receives many queries pertaining to digital assets and their numerous uses. The Gaidar economic forum is an annual event that seeks to bring together businessmen, academicians, and politicians to discuss the opportunities and challenges facing the country.
Alexei made an example using a case of a local Russian individual who was recently convicted for paying his utility bill at a local café using a payment card that had already been connected to a crypto account. According to the ministry, the transaction in question was completely legal. This is because the crypto in the card had initially been converted from dollars into Russian rubles.
At the end of the transaction, the café got to receive the amount owed to it in local fiat currency. This is a currency that is fully compliant with all the existing local laws, as was explained by the official from the ministry of finance.
Ivan Tikhonov, the founder of Bitsmedia, a crypto news outlet noted that crypto enthusiasts should not be afraid to use the cards as they are completely legal. The only thing that locals should not do is to maintain foreign or international accounts without first notifying the Russian tax services.
In addition, holders of such accounts would also be required to ensure that they get to report the funds' movement on a regular basis. Ivan went on to explain that the account holders were responsible for doing this under the Code of Administrative Offenses.
Currently, there are a number of crypto debit cards that can be used in Europe and North America. These cards are in many cases integrated with crypto wallets as well as payment processors. These are processors that instantly convert the cryptocurrency into fiat money for both in-store and online purchases as is the case with many other cards issued by banks.
Digital Currency Is No Longer A Pyramid Scheme
During the forum, the Russian deputy finance minister was also quick to point out that the crypto industry had recently undergone very many changes, all of which were positive in nature. Unlike in past years, the cryptocurrencies no longer bear the signs associated with financial pyramid schemes.
He went on to add that the anonymity associated with blockchain transactions as well as other digital assets is nothing more but an illusion. Digital financial assets or cryptocurrencies are at the moment not regulated in the country. However, this is expected to change this spring when the Russian parliament is set to adopt three laws that are aimed at regulating the cryptocurrency sector.