The Use of Cryptocurrencies in Cross-Border Transactions: Issues and Prospects for Legal Regulation

The paper explores the prospects for utilizing cryptocurrencies (digital currencies) within the context of foreign economic activity and analyzes the key legal challenges in this area. Currently, the use of digital currencies in cross-border transactions stands out as one of the most effective mechanisms for countering economic sanctions imposed by unfriendly states. In pursuit of these objectives, the Russian Federation has implemented an experimental legal framework for transactions involving cryptocurrencies. Furthermore, it has been established that cross-border settlements in cryptocurrencies were practiced prior to the initiation of this experimental regime, often in defiance of the existing prohibition on accepting digital currencies as consideration. It has been established that the state must ensure the simultaneous implementation of two public interests, which do not contradict each other: upholding legality and countering economic sanctions. This objective is to be achieved through amendments to legislation that introduce liability for violations of the aforementioned prohibition. Terminological inaccuracies within the digital currency legislation have been identified, specifically the inability to incorporate stablecoins with centralized issuers—which have become the primary instrument for cross-border settlements—into the legal concept of “digital currency.” The author substantiated the rationale for conducting a controlled experiment on the use of digital currencies in cross-border settlements.

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