Russia says it uses Bitcoin for trade payments amid efforts to sidestep sanctions

Russia is using Bitcoin and digital currencies with international trade partners amid efforts to counter Western sanctions, said Anton Siluanov, the country’s finance minister.

“Such transactions are already occurring. We believe they should be expanded and developed further,” he said in a Wednesday interview with state media outlet Russia 24, according to Reuters. “I am confident this will happen next year.”

The comments come after the country in July announced a plan to allow use of crypto in international trade. Russia’s experimentation with cryptocurrency follows years of limits on its financial activities abroad.

In 2014, the US and other European countries imposed sanctions on Russian companies and individuals after President Vladimir Putin ordered the annexation of Crimea, a region of Ukraine.

In 2022, the US and other countries increased Russian sanctions after Putin’s broader invasion of Ukraine.

In response, Russia has dabbled with cryptocurrency to evade the West’s financial limits.

A sanctioned crypto exchange in Russia has processed more than $20 billion in crypto transactions.

Donald Trump, who has publicly backed Bitcoin and other cryptocurrencies, has signalled warmer relations with Putin when the president-elect takes office in January.

Russian companies have increasingly resorted to stablecoins, including Tether, to trade with Chinese firms, Bloomberg reported in May.

And in July, Russia passed legislation that allows businesses to officially use cryptocurrency in international trade.

Tether

Russia’s use of cryptocurrency to evade Western sanctions puts the spotlight on Tether, a stablecoin US officials have scrutinised for its alleged links to illicit finance.

In October, the Wall Street Journal reported that the Department of Justice was probing Tether for possible violations of sanctions and anti-money laundering laws.

Tether CEO Paolo Ardoino pushed back against the allegations.

“There is no indication that Tether is under investigation,” he wrote on X. “WSJ is regurgitating old noise. Full stop.”

The reported investigation into Tether is happening under the watch of Joe Biden’s administration.

Trump picked Howard Lutnick, the CEO of Cantor Fitzgerald and prominent Tether booster, as his secretary of Commerce.

The Cantor Fitzgerald CEO reportedly has a 5% stake in Tether, according to the Wall Street Journal.

Crypto market movers

• Bitcoin is down 2.8% in the past 24 hours to trade at $95,640.
• Ethereum is also down 3.5% to trade at $3,369.

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Ben Weiss is DL News’ Dubai Correspondent. Got a tip? Email him at bweiss@dlnews.com.