- Russia’s anti-money laundering watchdog has pushed for the use of cryptocurrencies to avoid complications in global trade.
- Pending legislation sought to legalise cryptocurrency for international transactions in order to improve Russia’s ability to operate under global sanctions.
OUR TAKE
Russia is accelerating the development of its cryptocurrency infrastructure to facilitate international payments amid ongoing sanctions, with new legislation due to be considered by parliament on 23 July. The move is aimed at allowing Russian businesses to bypass traditional financial systems and maintain trade flows with key partners such as China and India, despite Western regulatory pressure. As these changes unfold, the global financial community will be closely monitoring the impact on international trade and regulatory compliance.
–Heidi Luo, BTW reporter
What happened
Russia’s anti-money laundering watchdog has announced plans to accelerate the creation of cryptocurrency payment infrastructures in an effort to avoid complications in international trade. This development coincides with the upcoming parliamentary review of new legislation, scheduled for 23 July, which aims to legalise cryptocurrency transactions for international payments.
Faced with increased scrutiny from Western regulators, which has slowed transactions with key trading partners such as China and India, Russia sees cryptocurrencies as a viable alternative to maintain trade flows. The legislative push is part of a broader effort to adapt to the global sanctions environment, providing Russian businesses with new mechanisms to engage internationally.
“This is a need for businesses, especially in cases involving sanction mechanisms, when they need to enter the international market, and it can’t always be resolved through standard methods,” said the watchdog’s head, Yuri Chekhanchin.
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Why it’s important
In addition to promoting cryptocurrency payments, Russian authorities are exploring the integration of digital currency systems with other sanctioned countries. The central banks of Russia and Iran are actively working to link their digital currency systems to facilitate bilateral transactions. Similar negotiations are underway with China and Belarus to establish more robust alternatives to traditional financial systems that are vulnerable to international sanctions.
President Vladimir Putin has also weighed in on the digital currency discourse, emphasising the need for regulatory frameworks, particularly in relation to the energy consumption of cryptocurrency mining.
This concern stems from the high energy consumption of mining operations in Siberia, which take advantage of the region’s low electricity costs. The upcoming legislation is expected to include tax and electricity tariff regulations for these mining operations, addressing both economic and environmental impacts.
