Russian Businesses Avoid Sanctions with Cryptocurrencies

According to the Ministry of Finance, Russian enterprises operating inside the Russian Federation have started using cryptocurrency to bypass sanctions in cross-border transactions.

Already, Russian enterprises are evading restrictions via cryptocurrency. Despite the fact that the crypto scene in the Russian Federation is not yet fully regulated, this is the case.

Ivan Chebeskov, head of the financial policy department at the Ministry of Finance, revealed this in an interview.

Chebeskov did not identify the firms involved. However, reports indicate that the amount of transactions has increased significantly. This is in the context of an intensifying sanctions system.

Vladimir Gamza is the president of the Russian Federation’s Chamber of Commerce and Industry. He said that businesses in the Russian Federation mostly employ virtual currencies for dealings with hostile nations (USA, Ukraine, Norway, Singapore and others).

Before the end of the year, it is anticipated that the Russian authorities will adopt legislation criteria for cross-border bitcoin transactions. However, the Russian Federation government has no plans to authorize the circulation of cryptocurrencies.

The Central Bank of the Russian Federation is less hopeful about the use of cryptocurrencies overseas than the Russian government. In lieu of cryptocurrencies, the Central Bank of the Russian Federation prefers the digital ruble, which is now being tested by a restricted number of Russian institutions.

Elvira Nabiullina is the head of the Russian Federation’s Central Bank. She said that the financial super-regulator plans to push the digital ruble for international transactions. Already, a prototype system for interacting with various monetary systems is being developed.

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