After its assault on Ukraine prompted a harsh reaction from Western countries in the way of sanctions, Moscow has taken a constructive approach toward cryptoassets. The Russian Federation is now considering accepting cryptos for international payment following the sanctions after its invasion of Ukraine at the start of the year.
Russia is considering cryptos for international payments
According to the Moscow-based Interfax media organization and Reuters, Ivan Chebeskov, the head of Russia’s Finance Ministry’s Financial Policy Division, is actively studying the potential of introducing cryptocurrency payments.
Chebeskov said, “The idea of using digital currencies in transactions for international settlements is being actively discussed.”
The Ministry Of Finance is contemplating including the idea of overseas payments in an amended version of a cryptocurrency law which is currently in the works, as per a local newspaper Vedomosti.
The Russian administration looks to be united in its support for crypto legalization. Moscow intends to legalize cryptocurrency payments “sooner rather than later,” as per trade minister Denis Manturov. The country’s Ministry of finance backed adoption in April with a measure called “On Digital Currency.”
Also, in April, the Bank of Russia’s governor revealed that the central bank was reviewing its anti-digital asset stance. Cryptocurrency is being evaluated as one of the various strategies to lessen the effects of international sanctions on the Russian economy, according to Central Bank Governor Elvira Nabiullina.
Conducting business with designated Russian Individuals and companies prohibited
Considering that the cryptocurrency market is neither big nor liquid enough to satisfy an independent nation’s transaction demands, it’s unclear how Russia will be able to employ virtual currencies to circumvent Western sanctions. To begin with, the US Office of Foreign Assets Control (OFAC) has prohibited any American from doing trade with people or companies on its Specially Designated Nationals and Blocked Persons (SDN) List. Irrespective of the payment channels in place, conducting trade with Russian SDNs is prohibited.
US-based Blockchain Association’s head of policy, Jake Chervinsky, said, “There are zero reasons to think crypto’s existence will convince any of them to willfully violate sanctions laws, risking fines & jail time.”