Russian Finance Minister Anton Siluanov announced that russian companies are leveraging Bitcoin and digital assets for global trade, aided by new legislation.
On Wednesday, Russian Finance Minister Anton Siluanov disclosed that domestic businesses are currently employing Bitcoin and other digital assets for international transactions. This practice has been facilitated by recent legislative modifications that were intended to counteract Western sanctions.
It is crucial to acknowledge that these sanctions have presented obstacles to Russia’s trade with significant partners, including China and Turkey. Local institutions have adopted a cautious stance in order to prevent regulatory backlash from the West.
Siluanov stated in a statement to the Russia 24 television channel,
As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions). Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year.
Earlier this month, President Vladimir Putin declared that the dollar’s status as the world’s reserve currency is being compromised by the US administration’s utilization of it for political gain.
Subsequently, this has motivated numerous nations to investigate alternative assets. Noting Bitcoin as a prime example, he underscored its global resistance to regulation. In essence, these statements indicated that Putin was endorsing the increasing prevalence of cryptocurrencies.
MegaFon recently reported that this month’s global excitement was fuelled by the price surge of Bitcoin above $100,000, which resulted in an 8% increase in web traffic to crypto exchanges in Russia.
This growth has also been influenced by global trends and regulatory changes. MegaFon’s research also revealed an 8%-10% monthly increase in visits to the top 20 exchanges worldwide, with Russian users accounting for 27%-30% of the total traffic.
In order to bolster its status as one of the world’s leading Bitcoin mining nations, Russia has authorized the use of cryptocurrency in foreign trade and has intensified its efforts to legalize mining activities this year.
The most recent focus of the Russian authorities’ crackdown on illicit crypto-mining is the Irkutsk region. Additionally, they have intensified their efforts.
In cooperation with law enforcement, the Irkutsk Electric Grid Company has terminated an unregistered operation that utilized more than 200 ASIC rigs and consumed 600,000 kWh per month, which is equivalent to the energy consumption of 80-100 households.
Despite being registered as a business, it is purportedly unable to satisfy the requirements of the crypto-mining registry.
This follows the extension of Russia’s winter crypto-mining prohibition until 2031, which would have affected regions such as Dagestan, Chechnya, and Siberia. The prohibition of mining during peak energy seasons will take effect in January 2025. The imbalances in electricity payments and utility strain have been caused by crypto mining, which consumes 1.5% of national power.