Russian companies have started using Bit and other digital currencies for cross-border payments after new laws allowed these transactions.
Finance Minister Anton Siluanov announced this on Wednesday on National Television.
Russia is changing regulations on cryptocurrencies
According to a Reuters report, this change is happening as Western sanctions complicate trade with key partners like China and Turkey. International banks are increasingly hesitant to process transactions involving Russia to avoid regulatory scrutiny.
Putin's government sees Bit as a legitimate tool to circumvent sanctions and engage in real-time cross-border transactions. This year, the country has legalized the use of cryptocurrencies in international trade and introduced measures to support Bit mining.
"Within the framework of the experimental regime, we can use the Bit that we have mined in Russia (in international trade transactions). Such transactions have already taken place. We believe they should be expanded and further developed. I am confident this will happen next year,"
Finance Minister Anton Siluanov said.
Meanwhile, Russia has been one of the world's leading Bit miners. Siluanov emphasized that domestically mined Bit is currently being used in trade under an experimental framework. He expressed optimism about expanding this practice, calling digital currency payments the future of international trade.
Recently, President Vladimir Putin also criticized the political use of the USD, saying this is driving countries to seek alternative financial tools. In a statement earlier this month, he acknowledged Bit as a global unregulated asset and supported its wider adoption. Just a few days after his statement, BTC reached the $100,000 milestone in early December.
Adding to this momentum, Russian lawmaker Anton Tkachev proposed creating a Bit reserve to bolster the country's financial capabilities.
"Who needs the USD? Russian companies are now using Bit and other cryptocurrencies for international trade. Thanks to new laws, Russia can now use domestically mined Bit to circumvent Western sanctions,"
Mario Nawfal wrote on X (formerly Twitter).
Policy changes and regional mining restrictions
Russia has made notable changes to its cryptocurrency laws. An amended tax framework exempts cryptocurrency transactions from value-added tax (VAT). Instead, income related to cryptocurrencies will be taxed like securities income, with a maximum personal income tax of 15%.
At the same time, the government is imposing new restrictions on Bit mining in energy-deficient regions. Mining will be banned in 10 regions from 01/2025 to 03/2031. In energy-deficient areas like Irkutsk, Buryatia, and the Trans-Baikal region, mining activities will be suspended during peak demand periods, specifically from 01/01 to 15/03/2025, and from 15/11 to 15/03 in subsequent years.
These measures reflect Russia's balancing act - embracing cryptocurrencies for international trade while addressing domestic energy challenges. The evolving policies demonstrate the government's strategic approach to integrating digital currencies into its economy.
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