Recent reports have revealed that Russian companies have begun using Bitcoin and other digital assets in international transactions to bypass sanctions. The country’s Finance Minister also shared the government’s plan to expand its use of crypto as an alternative payment method in other countries.
Russian Companies Use Bitcoin for International Payments
According to a recent Reuters report, Russian Finance Minister Anton Siluanov announced that companies have started using Bitcoin and other cryptocurrencies for international payments to avoid sanctions.
Speaking to the local news channel Russia-24, the minister revealed that the country has officially started using these methods of trade with foreign countries following this year’s legal changes:
As part of the experimental regime, it is possible to use Bitcoin, which was mined here in Russia.
In July, Russian lawmakers passed a bill that allows businesses to use cryptocurrencies, including Bitcoin, in international transactions. Under the new law, which went into effect in September, the central bank will work on an “experimental” infrastructure for crypto payments, with the first transactions expected to take place before the end of the year.
On Wednesday, Siluanov explained that these transactions are “already happening,” explaining that international payments in crypto represent the future. He added that the government believes that “they should be expanded and improved more.” I hope this will happen next year.”
Russian companies, exchanges, and crypto organizations can apply to the central bank to join the inspection regime. However, crypto payments within Russia continue to be banned.
The report notes that the country has faced significant delays in international payments with its major trading partners. China, India, Turkey, and the United Arab Emirates (UAE) are “extremely wary of Russia-related transactions to avoid scrutiny by Western regulators.”
On Thursday, media outlet Ukrainska Pravda reported that Ukraine has threatened sanctions against Russia for using Bitcoin in international transactions. Vladyslav Vlasiuk, Advisor to the president of Ukraine and Commissioner for Sanctions Policy, announced “sanctions and other solutions” to prevent the country from using crypto to bypass the sanctions:
Are we surprised at all? No, without exaggeration, we were the first to draw the attention of our partners to such enemy plans back in the summer. Appropriate penalties and other solutions to prevent the possibility of using unwanted cryptocurrency payments are being prepared.
Crypto Landscape in Russia
This year, the Russian government has made several crypto-related legal changes. As reported by Bitcoinist, President Putin signed various laws that came into force on November 1. The new law dealt with the mining sector, giving legal status to these activities.
Putin also approved a law to regulate crypto profits, which aims to increase government control over Bitcoin and crypto mining operations. The amendments also allowed authorities to regulate the activities of companies providing mining infrastructure.
Following these changes, the country approved a six-year ban on mining activities in key regions and a seasonal ban in certain areas due to Russia’s ongoing electricity crisis, making large-scale energy supply almost impossible until 2030.
According to the report, the measure includes a six-year ban on all crypto mining and mining activities in ten regions, including Dagestan, Ingushetia, and North Ossetia. In addition, some areas of Irkutsk region, Buryatia, and Zabaikalsky Krai will face restrictions on certain periods of use, as mining activities are prohibited from January 1, 2025.
However, more than 150 local mining companies have reportedly applied for a license to operate legally in Russia, and more companies are expected to register soon.
Bitcoin is trading at $96,102 in the weekly chart. Source: BTCUSDT on TradingView
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