Russia will accept Bitcoin, a crypto asset for cross-border transactions, the finance minister says

Key Takeaways

Russian companies are using Bitcoin to avoid Western sanctions for international payments.
Starting in 2025, Russia will ban crypto mining in several sectors to regulate energy consumption.

Russia is using crypto assets and Bitcoin as a way to counter Western financial sanctions. Finance minister Anton Siluanov said on Wednesday that companies in the country are starting to accept digital currencies for cross-border transactions.

“As part of the experimental regime, it is possible to use Bitcoins, which we had mined here in Russia,” Siluanov told Russian television channel 24, which was first reported by Reuters.

The move comes after Western countries imposed sanctions on Russia following its invasion of Ukraine, limiting the ability of Russian companies to conduct international trade through traditional banking channels. Russian banks have been careful about handling transactions related to Russia to avoid Western regulatory action.

Russia recently changed its laws to allow crypto assets in foreign trade. Last month, President Vladimir Putin signed it statute recognizes digital currencies as property in foreign trade settlements under an experimental legal regime. The new framework exempts crypto mining and sales from value added tax.

Siluanov expressed confidence that the use of crypto assets in international trade will expand and develop in the coming year.

While Russia has taken steps to legalize and promote crypto mining, especially Bitcoin, through it statute signed in August, the government announced restrictions this week due to local electricity shortages.

Starting on January 1, 2025, crypto mining will ban in several areas to manage energy consumption amid persistent shortages. The new resolution will limit mining activity in ten main areas for six years, through March 15, 2031.