Russian Companies Using Bitcoin For International Payments To Evade Sanctions – Report

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As a researcher, I’ve recently uncovered intriguing insights: It appears that Russian entities are adopting cryptocurrencies like Bitcoin for international trade transactions, potentially circumventing existing sanctions. Remarkably, the Russian Finance Minister has hinted at broadening the government’s crypto usage, suggesting a shift towards digital assets as an alternative means of cross-border payment.

Russian Companies Use Bitcoin For International Payments

In my latest findings, I’ve come across an interesting development: As per a recent Reuters report, it appears that certain entities in Russia are now employing digital currencies like Bitcoin for cross-border transactions, seemingly as a means of bypassing existing sanctions.

In an interview with Russia-24 news, the minister disclosed that the nation started utilizing these alternative methods for international trade deals after this year’s legal amendments.

In the context of our experiment, you can employ Bitcoins that were mined right here in Russia.

In July, Russian legislators approved a bill permitting companies to employ cryptocurrencies such as Bitcoin in overseas commerce. This new law, which came into force in September, mandates the central bank to establish an “experimental” system for crypto transactions, with initial transactions anticipated before the end of the year.

On a Wednesday discussion, Siluanov articulated that such cryptocurrency transactions “already take place,” outlining his view that global cryptocurrency payments symbolize the future. Furthermore, he expressed the government’s perspective that they ought to be broadened and advanced even more, expressing confidence that this development will unfold in the coming year.

Russian businesses, trading platforms, and digital currency organizations have the option to apply for participation in the experimental regulatory framework overseen by the central bank. Notably, the use of cryptocurrencies as a means of payment within Russia remains prohibited at this time.

The report notes that the country has faced significant delays in international payments with its biggest trading partners. China, India, Turkey, and the United Arab Emirates (UAE) “are extremely cautious with Russia-related transactions to avoid scrutiny from Western regulators.”

On Thursday, Ukrainska Pravda news outlet reported that Ukraine plans to impose sanctions on Russia due to its use of Bitcoin in international trade. Vladyslav Vlasiuk, an advisor to the president of Ukraine and Commissioner for Sanctions Policy, declared they are considering “sanctions and other measures” to prevent Russia from using cryptocurrency as a means to circumvent existing sanctions.

Were we taken aback by this development? Not at all. In fact, we were among the earliest to alert our partners about the enemy’s plans regarding this matter as far back as summer. Already, appropriate sanctions and alternative measures to prevent undesired cryptocurrency transactions are being readied for implementation.

Crypto Landscape In Russia

In my analysis this year, I’ve observed that the Russian government has introduced a series of amendments in the crypto sphere. According to Bitcoinist, President Putin has approved several bills effective from November 1st. These legislative changes significantly impacted the mining sector, providing it with legal recognition for its operations.

Additionally, Putin gave his endorsement to a law aimed at supervising cryptocurrency transactions, with the goal of increasing the government’s oversight on Bitcoin and crypto mining ventures. These changes also empowered officials to manage the operations of firms offering mining equipment.

As an analyst, I am reporting that my analysis indicates the country has enacted restrictions on mining operations for a six-year period in crucial regions and implemented seasonal bans in specific territories, owing to Russia’s persistent energy crisis. This predicament renders providing substantial power capacities almost impossible until 2030.

As per the provided report, this regulation encompasses a six-year ban on crypto mining and mining pool operations across ten specific areas, which include Dagestan, Ingushetia, North Ossetia, as well as certain regions within Irkutsk, Buryatia, and Zabaikalsky Krai. Furthermore, it’s important to note that during periods of high energy consumption, mining activities will be temporarily banned in specific territories of these regions starting from January 1, 2025.

Nevertheless, approximately 150 local mining businesses are said to have submitted applications for legal operation within Russia, with additional companies planning to follow suit shortly.

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2024-12-27 09:42