With the growing popularity of stablecoins as a payment method, many companies are beginning to accept these digital assets, opening new opportunities for international trade.
Stablecoins as a New Payment Method
In recent years, the use of stablecoins for crypto payments has been increasing. Many global companies have started to embrace this new payment method, although in several countries, including China, Indonesia, Russia, and Turkey, the use of cryptocurrencies for retail transactions remains prohibited.
Legal Aspects of Using Cryptocurrencies Abroad
Despite the bans on domestic crypto payments, using cryptocurrencies to pay for services abroad may be legally permissible. Legal experts argue that the laws of a country generally apply only to events occurring within its territory. For instance, the Georgian travel company Tripzy has started accepting payments in the USDT stablecoin, providing clients from countries with currency restrictions more options.
Implications for Global Regulations and FATF Warnings
Regulatory overlaps regarding the use of cryptocurrencies may attract the attention of global authorities. The Financial Action Task Force (FATF) has expressed concerns about the increasing use of stablecoins in illicit transactions. Their warnings highlight the necessity of adhering to anti-money laundering measures and controlling the use of crypto assets.
Thus, while there are domestic bans on crypto payments, using stablecoins for international transactions may be legal, opening new avenues for businesses and travelers.
