Russia is adopting Bitcoin and cryptocurrency assets in cross-border transactions, the Russian Finance Minister says

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Russia is using crypto assets and Bitcoin as an alternative solution to Western financial sanctions. Finance Minister Anton Siluanov said on Wednesday that companies in the country have begun to adopt digital currencies for cross-border transactions.

“As part of the experimental system, it is possible to use bitcoins, which we have mined here in Russia,” Siluanov told the Rossiya 24 TV channel, as first reported by Reuters.

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

Russia recently amended its laws to allow cryptocurrency assets in foreign trade. Last month, President Vladimir Putin signed legislation Recognition of digital currencies as property in foreign trade settlements under a pilot legal regime. The new framework exempts cryptocurrency mining and sales from VAT.

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 legitimize the mining and promotion of cryptocurrencies, especially Bitcoin, through… legislation The government, signed in August, announced restrictions this week due to local electricity shortages.

Starting January 1, 2025, cryptocurrencies will be mined Banned in several regions To manage energy consumption amid ongoing shortages. The new decision will limit mining activities in ten major areas for a period of six years, until March 15, 2031.

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