Russia Embraces Bitcoin for International Trade Amid Sanctions
Russian companies have begun using Bitcoin and other digital currencies for cross-border payments following the introduction of new laws allowing such transactions.
Finance Minister Anton Siluanov announced the news on state television on Wednesday.
Russia is changing its cryptocurrency regulations
The shift comes as Western sanctions complicate trade with key partners such as China and Türkiye, Reuters reported. International banks have become increasingly hesitant to handle Russia-related transactions to avoid regulatory scrutiny.
Putin’s government considers Bitcoin an effective tool to avoid sanctions Participate in real-time cross-border transactions. This year, the country has legalized the use of cryptocurrencies in foreign trade and introduced measures to support Bitcoin mining.
“As part of the experimental system, it is possible to use the Bitcoins we mine in Russia (in foreign trade transactions). Such transactions are already happening. We believe that they should be further expanded and developed. I believe this will happen next year,” Finance Minister An Don Siluanov said.
Meanwhile, Russia is already one of the largest Bitcoin mining countries in the world. Siluanov emphasized Domestic mined Bitcoin It is currently being used for trade under a pilot framework. He expressed optimism about expanding the practice, saying digital currency payments are the future of international trade.
Recently, Russian President Vladimir Putin also criticized the political use of the dollar, saying it prompted countries to seek alternative financial instruments.
earlier this month, He noted that Bitcoin is an unregulated global asset and endorses its wider adoption. Just days after his statement, BTC crosses $100,000 milestone Early December.
Russian MP Anton Tkachev added to the momentum Proposal to create a Bitcoin reserve to enhance the country’s financial resilience.
“Who needs dollars? Russian companies are now using Bitcoin and other cryptocurrencies for international trade. Thanks to new laws, Russia can now use its locally mined Bitcoin to circumvent Western sanctions.” Mario Nawfal Wrote on X (formerly Twitter).
Policy shifts and regional mining restrictions
Russia has made significant changes to its encryption laws. one Revised tax framework Cryptocurrency transactions are exempt from Value Added Tax (VAT). Instead, cryptocurrency-related income will be taxed like securities income, with a personal income tax cap of 15%.
Meanwhile, the government is imposing new restrictions Bitcoin mining in areas facing energy shortages. Mining will be banned in 10 areas From January 2025 to March 2031.
In energy-stressed regions such as Irkutsk, Buryatia and the Trans-Baikal region, mining activities will be suspended during periods of high demand, especially from January 1 to March 15, 2025, and in November in subsequent years. 15th to March 15th.
The measures reflect Russia’s balancing act of embracing cryptocurrencies in international trade while addressing domestic energy challenges. The shift in policy marks the government’s strategic approach to integrating digital currencies into the economy.
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