INSUBCONTINENT EXCLUSIVE:
Russia has increasingly turned to cryptocurrencies to address challenges with ruble transactions including convertibility issues, payment
limited trade, its broader adoption in international commerce remains uncertain due to the hesitancy of Moscow's partners and heightened
have taken significant steps to promote and regulate cryptocurrencies after years of hesitation.A new set of laws that took effect in
November 2024 legalizes cryptocurrency mining and permits crypto payments for international transactions, though domestic payments are not
late 2024 under a confidentiality regime
improve tax collection and energy management
Under the new laws, the government can restrict mining in regions facing energy shortages, a measure it has already implemented in several
regions to prevent blackouts.More crucially, Russia seeks to use cryptocurrency for international payments beyond the reach of Western
result of this mining has legally become the basis for mutual settlements ..
in the case of stablecoins tied to real-world currencies like the U.S
dollar, less volatility than the Russian ruble or other currencies
They also operate with less Western oversight than traditional financial transactions.Reuters reported this month that Russia has begun
News AgencyRussian oil companies are reportedly using bitcoin and the U.S
dollar-pegged stablecoin Tether (USDT) for these transactions
Unlike bitcoin, stablecoins like USDT cannot be mined but can be acquired using other cryptocurrencies.To improve the domestic circulation
of crypto, Russia has drafted rules allowing "highly qualified" investors to trade cryptocurrencies within an experimental framework.Can
adversaries like Iran and North Korea have expanded their involvement in the sector.The U.S
recently sanctioned the Garantex crypto exchange for alleged money laundering, leading to the arrest of Russian resident Aleksej Besciokov
authorities seized $27 million worth of stablecoins linked to Garantex.There are avenues for illegal or grey area activities in the
cryptocurrency world, with nefarious players resorting to unknown or disreputable exchanges like Garantex, peer-to-peer trading platforms or
difficult, so most investigations are largely reactive
However, the Western governments, with the help of industry professionals, have gotten pretty good with tracking and seizing illicit
authorities and blockchain intelligence firm Elliptic.While the learning curve to quickly detect criminal activity is not on the side of
governments, crypto exchanges are increasingly implementing stringent compliance measures as the industry becomes more mainstream, Voloshin
either Russia or its counterparty, and then it could be relatively simple to identify all the other wallets transacting with it to get a
settle commercial contracts in cryptocurrency.Countries like India and China may be open to increasing crypto-based payments for Russian
to Russia.Logo of Garantex, a virtual currency exchange.ZUMA / TASSYet convincing foreign companies to accept crypto for regular,
large-scale transactions is a tougher sell
are no reliable statistics to estimate how much of Russia's trade with its foreign partners is conducted in cryptocurrencies
is also being used to purchase civilian and military electronics for Russia
However, most of this trade still relies on traditional banking methods, Voloshin noted."Transactions between large state-owned companies,
such as Russia's Rosneft selling oil to China's CNPC, would still involve the state banks of the buyer and seller and direct conversions
between the ruble and yuan and rupee, which are supported by central banks, rather than using cryptocurrency as a medium of exchange," he
