Russia adopts Bitcoin, crypto assets for cross-border transactions, finance minister says

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Russia is using crypto assets and Bitcoin as a workaround to Western financial sanctions. Finance minister Anton Siluanov said Wednesday that companies in the country are beginning to embrace digital currencies for cross-border transactions.

“As part of the experimental regime, it is possible to use Bitcoins, which we had mined here in Russia,” Siluanov told Russia 24 television channel, first reported by Reuters.

The shift comes after Western nations imposed sanctions on Russia following its invasion of Ukraine, limiting Russian companies’ ability to conduct international trade through traditional banking channels. Russian banks have become wary of handling Russia-related transactions to avoid Western regulatory action.

Russia recently modified its laws to permit crypto assets in foreign trade. Last month, President Vladimir Putin signed legislation recognizing digital currencies as property in foreign trade settlements under an experimental legal regime. The new framework exempts crypto mining and sales from a value-added tax.

Siluanov expressed confidence that the use of crypto assets in international trade will expand and develop further in the coming year.

While Russia has taken steps to legalize and promote crypto mining, particularly Bitcoin, through legislation signed in August, the government announced restrictions this week due to local electricity shortages.

Starting January 1, 2025, crypto mining will be banned in several regions to manage energy consumption amid ongoing shortages. The new resolution will limit mining activities in ten key areas for six years, through March 15, 2031.

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