Russian businesses to be fined for crypto payroll
The post Russian businesses to be fined for crypto payroll appeared on BitcoinEthereumNews.com. Russian companies that have been tempted to pay employees in cryptocurrency are likely to be hit with hefty fines, according to labor authorities in Moscow. Crypto has been gaining traction as a means of remuneration since Russia permitted limited use of cryptocurrencies in cross-border transactions, but regulators are adamant that the ruble remains the only legal tender, including when it comes to wages. Russia’s labor agency threatens fines for crypto salaries Russian businesses are not allowed to pay salaries in cryptocurrency, fully or partially, according to Russia’s State Labor Inspectorate. The agency outlined its categorical stance in a response to a request from employers for clarification on the matter, the Russian daily Izvestia unveiled this week. The inspectorate’s position has been confirmed by the Ministry of Labor, the publication added. According to the country’s Labor Code, salaries can be paid exclusively with money, and cryptocurrency has so far been recognized only as property in Russia, the article explained. Using digital coins for payroll purposes has become relevant since the Russian government legalized crypto settlements in foreign trade to help companies deal with financial restrictions imposed over Moscow’s invasion of Ukraine. Since 2024, legal entities have been permitted to make international payments in crypto through state-authorized platforms and strictly within an “experimental legal regime” (ELR). The arrangement has tempted some employers to pay wages this way as well. Questions regarding the option also arise from the convenience of cross-border crypto transfers that are fast and low-cost. That makes them attractive for Russian firms working with foreign specialists, explained Alexander Khaminsky from the industry organization Business Russia. However, using anything other than the ruble as a means of payment, outside the ELR, is still against the law in Russia. And no exception has been made so far that would allow salaries to…
The post Russian businesses to be fined for crypto payroll appeared on BitcoinEthereumNews.com.
Russian companies that have been tempted to pay employees in cryptocurrency are likely to be hit with hefty fines, according to labor authorities in Moscow. Crypto has been gaining traction as a means of remuneration since Russia permitted limited use of cryptocurrencies in cross-border transactions, but regulators are adamant that the ruble remains the only legal tender, including when it comes to wages. Russia’s labor agency threatens fines for crypto salaries Russian businesses are not allowed to pay salaries in cryptocurrency, fully or partially, according to Russia’s State Labor Inspectorate. The agency outlined its categorical stance in a response to a request from employers for clarification on the matter, the Russian daily Izvestia unveiled this week. The inspectorate’s position has been confirmed by the Ministry of Labor, the publication added. According to the country’s Labor Code, salaries can be paid exclusively with money, and cryptocurrency has so far been recognized only as property in Russia, the article explained. Using digital coins for payroll purposes has become relevant since the Russian government legalized crypto settlements in foreign trade to help companies deal with financial restrictions imposed over Moscow’s invasion of Ukraine. Since 2024, legal entities have been permitted to make international payments in crypto through state-authorized platforms and strictly within an “experimental legal regime” (ELR). The arrangement has tempted some employers to pay wages this way as well. Questions regarding the option also arise from the convenience of cross-border crypto transfers that are fast and low-cost. That makes them attractive for Russian firms working with foreign specialists, explained Alexander Khaminsky from the industry organization Business Russia. However, using anything other than the ruble as a means of payment, outside the ELR, is still against the law in Russia. And no exception has been made so far that would allow salaries to…
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