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Crypto Payments May Not Help Russia Bypass Sanctions, Experts Say – Finance Bitcoin News

Crypto Payments May Not Help Russia Bypass Sanctions, Experts Say

Russia is preparing to authorize international crypto payments but people involved in the industry doubt this would allow the country to circumvent sanctions. At the same time, the United States has been tightening the noose, recently targeting the use of cryptocurrencies to dodge the financial restrictions imposed by the West with new legislation in Congress.

Russian Crypto Experts Claim Circumventing Sanctions With Cryptocurrency Is a ‘Great Illusion’

This week, Russian authorities announced they had started developing a mechanism for cross-border settlements with crypto assets, with the goal to reduce the sanctions pressure on the Russian economy and trade. The Ministry of Finance said that a bill legalizing such transactions has been agreed upon with the Central Bank of Russia.

Moscow is now in a rush to adopt regulations for the issuance, circulation, and various operations with digital currencies, particularly payments for imports and exports restricted by Western sanctions over its invasion of Ukraine. Meanwhile, the House of Representatives of the U.S. Congress approved a new bill with measures aimed at curbing the use of cryptocurrencies to circumvent them.

On this backdrop, experts with knowledge of the industry have shared with Russian media their opinions on how realistic it is to bypass the sanctions with the help of cryptocurrencies. The crypto page of the Russian business news portal RBC has compiled them in an article, the title of which starts with the expression “Great Illusion.”

The introduction of a crypto payment system under sanctions is exactly that, a big illusion, according to Maria Stankevich, director of development at the digital asset exchange Exmo (Exmo.com). She reminded that many state-owned companies were discussing this option back in 2014, amid earlier sanctions adopted after the Russian annexation of Crimea.

This Isn’t the First Time Russia Turns Toward Cryptocurrencies for Payments

Mikhail Zhuzhzhalov, a senior lawyer at the Tomashevskaya & Partners law firm, agreed with the crypto executive that the idea of overcoming financial obstacles with the help of crypto is not new. In 2018, Russian authorities considered permitting international companies established in the country’s special administrative regions to use digital coins in settlements with partners but the proposal was rejected by regulators who had a very negative attitude at the time.

Regulatory pressure is usually exerted on…

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