The Russian requirement to declare cash when leaving the country and restrictions on exports of foreign currency do not apply to crypto-holdings of people traveling abroad.
The exemptions are primarily from financial regulators that stubbornly refuse to accept Bitcoin and others as Russian currency, such digital assets are currently recognized as mere assets and are not yet properly regulated.
Russians can travel freely with a code in their wallet
Summer is in full swing, and many Russians wonder how much and what kind of money they can take away when heading to popular resorts in top destinations like Turkey and Vietnam, which are emerging as new favorites of the year.
Like other jurisdictions, there is a specific reporting obligation for cash that travelers bring in their pockets and wallets when they leave the country. In Russia, if the amount is equivalent to 10,000 US dollars, it must be declared to the customs official.
The total threshold includes not only banknotes, but also traveler checks, and Evgeny Pantasy, a member of the Russian Bar Association (ALRF), reminded her in a report by the RIA Novosti News Agency on Sunday.
Legal commentators emphasized that individuals are required to declare that individuals are mandatory at both exits and entry into the Russian Federation.
However, there is no need to announce the balance between either a bank card or a cryptocurrency wallet, Pantaziy pointed out.
“Cryptocurrency is not declared because it is not cash or traveler checks.”
At the same time, the lawyer warned that exporting foreign Fiat currency over $10,000 is temporarily prohibited by Russian authorities.
The limits mentioned by the Pantasy were imposed by Russian regulators three years ago after the announcement of a full-scale invasion of Ukraine in Moscow.
The measure was imposed to reduce flights of hard currency at a time when Russia was subject to Western sanctions, including financial restrictions and assets freezes.
The latter had serious impact on the Russian state, including military efforts. Recent estimates by the UK’s Foreign and Commonwealth Development Office (FCDO) show that sanctions have taken away at least $450 billion that Russia can use to fund the war.
“The figures include $154 billion in oil tax revenue, mainly due to increased discounts between Urals (the Russian benchmark) and Brent crude (the global benchmark).
“This estimate also includes approximately $285 billion from the central bank that has fixed Russian foreign currency reserves held by the EU and G7 institutions.”
And it doesn’t even count private Russian assets frozen overseas.
Russia has not yet comprehensively regulated cryptography
Meanwhile, the Moscow authority has yet to make up its mind about decentralized digital currencies such as Bitcoin and has not adopted comprehensive regulations.
Meanwhile, financial authorities have allowed Russian companies to use digital coins in cross-border settlements to help them deal with restrictions on foreign trade.
Meanwhile, domestic encryption is strictly prohibited under the “digital financial assets” law, which came into effect in 2021. The recent package of legislative reforms further strengthens the nous on crypto-related transactions.
For now, cryptocurrencies are primarily recognized as property for the purposes of criminal cases, including asset attacks, for example, under Russian criminal law.
While the Bank of Russia allows for control and limited investment in crypto derivatives, the Bank of Russia is vehemently opposed to the free circulation of cryptocurrencies in the country’s economy, particularly its use as fiat currency.
Nevertheless, recent estimates cited by Cryptopolitan in June show that crypto assets in Russian accounts are on the rise, already exceeding $25 billion, but Russians continue to use them for international payments as a way to bypass war-related barriers.
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