How the post-Soviet crypto-payments market is evolving — BetaTransfer Kassa explains

In 2023, post-Soviet space countries continue to bring digital assets into the legal framework. This is driven by the adoption of MiCA in the EU and regulators’ interest in stablecoins and CBDC.

Together with the online payment-acceptance service BetaTransfer Kassa we discuss the legal status of cryptocurrency payments in Eastern Europe and the CIS, as well as why it’s profitable for businesses to accept digital assets.

In which countries is cryptocurrency accepted as a means of payment

At present, only two countries in the world have recognised Bitcoin as legal tender — El Salvador and the Central African Republic. However, the situation could change soon, including in the post-Soviet space.

Two years ago, data aggregator CoinMarketCap compiled an updatable rating of Bitcoin recognition by different states. Users of the service forecast which country will legalize cryptocurrency as a means of payment.

Notably, among post-Soviet countries, Ukraine is ranked fourth in the rating. Russia follows (sixth). Thus, according to the community, these two countries are the most likely contenders to legalize cryptocurrency as a means of payment.

After them, with a large gap, come:

• Kazakhstan — 48th place;
• Georgia — 56th;
• Estonia — 68th;
• Belarus — 72nd;
• Azerbaijan — 76th;
• Uzbekistan — 77th;
• Lithuania — 112th;
• Moldova — 123rd;
• Armenia — 132nd;
• Turkmenistan — 137th;
• Latvia — 139th;
• Kyrgyzstan — 142nd;
• Tajikistan — 160th.

In recent years, several of these countries have adopted and updated fundamental laws bringing cryptocurrencies into the legal space. Among them:

• Ukraine — Law ‘On Virtual Assets’;
• Russia — law ‘On Digital Financial Assets’;
• Kazakhstan — Law ‘On Digital Assets’;
• Georgia — regulatory framework for cryptocurrency trading in the country;
• Kyrgyzstan — Law ‘On Virtual Assets’;
• Uzbekistan — regulatory framework governing the circulation of crypto assets in the country.

In all jurisdictions, cryptocurrency is not recognised as a legal means of payment; however citizens of these countries can buy, sell and own digital assets.

Why businesses stand to gain from accepting cryptocurrency

Regulatory clarity around cryptocurrencies has spurred more active engagement between government and business with the industry.

Thus, in Kazakhstan a pilot project for creating and developing cryptocurrency exchanges has started. They have gained the ability to open bank accounts, accept fiat from clients, exchange them for digital assets and vice versa.

In Ukraine, cryptocurrency exchanges Binance and WhiteBIT added the option to verify Ukrainian clients via the state service “Diia,” and companies such as Join UP and Foxtrot integrated crypto-processing services.

“In Ukraine, there is significant interest in innovative payment methods among electronics retailers. At the same time, you can pay with crypto not only online but also offline,” says the BetaTransfer Kassa team.

According to the service’s representatives, amid rising popularity of crypto assets, more businesses will consider accepting them as payment for goods and services.

“When a new network of shops, restaurants, or gas stations starts accepting crypto, it’s an opportunity to remind itself in the media. The media readily spread such information. In addition, the fee for processing transactions in traditional payment systems ranges from 1.5–3.5%. For most cryptocurrency transactions it is 1%,” says the BetaTransfer Kassa team.

However, regulatory clarity alone is not enough to accept digital assets: a technical solution is needed to process cryptocurrency transactions as quickly and securely as transfers through Visa/Mastercard.

How to simplify accepting online payments

Crypto-processing services handle cryptocurrency payments. They must verify the authenticity and security of transactions on blockchains, and also provide exchange between cryptocurrencies and fiat at current rates.

Companies such as BetaTransfer Kassa offer solutions that enable accepting fiat and cryptocurrency payments. The service’s clients can transact with Visa/Mastercard cards, as well as Bitcoin, Ethereum and the stablecoin USDT (ERC20 and TRC20).

“Our clients do not need to limit themselves to bank cards and search for a separate product to accept crypto. We provide payment solutions that can be installed on the site or connected via API,” say the BetaTransfer Kassa representatives.

To register on the platform, you only need a corporate email, which significantly simplifies integration of the payment service.

BetaTransfer Kassa supports the US dollar, euro, hryvnia and other currencies, and also provides analytical data on incoming payments: payment methods, transaction amounts and top-ups.

Clients can convert funds from fiat to Bitcoin or USDT and withdraw them to any external wallets or exchanges.

Conclusions

Over the past few years, post-Soviet space countries have adopted basic laws that bring cryptocurrencies into the legal field. Some aspects of the industry remain unregulated, although, in the community’s view, Bitcoin is quite close to being recognised as a legal means of payment in Ukraine and Russia.

The popularity of digital assets among residents of post-Soviet countries and the absence of a direct ban on crypto payments contribute to more businesses starting to adopt them. Some seek to broaden their customer base or to remind themselves in the media, while others see cryptocurrencies as a more profitable and simpler way to accept online payments.