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Sanctions forced Russia to move towards legalizing crypto

Until now, Russia has always been among the most skeptical countries towards cryptocurrencies. Although digital money is not banned in the country, the government constantly tries to put obstacles in its use.

In many of his speeches, President Vladimir Putin has directly linked Bitcoin to criminal activity, calling for greater attention to cross-border crypto transactions. It’s all part of Moscow’s broader effort to fight what it calls “foreign agents” in Russia.

Now, however, that attitude is about to change.

The Bank of Russia and the country’s Ministry of Finance have revised their positions regarding cryptocurrencies, recognizing the need to legalize them for cross-border transactions, according to a TASS publication.

The new move is a reaction by Russian authorities amid the deepening effects of international sanctions on the Russian economy and the country’s ability to trade internationally.

After the start of the war in Ukraine against Moscow, a number of restrictive sanctions were imposed, including the withdrawal of the country’s banks from the SWIFT transaction system.

All this, along with the withdrawal of numerous companies and brands from the country, seriously affected the Russian economy. Now the Kremlin can look for a solution to some of its problems in cryptocurrencies, which until recently were disliked by the country’s leadership.

Deputy Minister of Finance Alexei Moiseev commented to the Russia 24 TV channel that both the Ministry of Finance and the Central Bank agreed that it was impossible to proceed without enabling cryptocurrency as a legal payment method for international trade.

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