“Russian Finance Ministry Employee Labels Cryptocurrency as”
Russia’s Ministry of Finance, previously known for proposing imprisonment for Bitcoin trading, has now changed its stance and recognizes the crypto industry as a catalyst for the country’s economic growth. Ivan Chebeskov, director of the financial policy department at the ministry, emphasized the ministry’s ongoing efforts to establish a regulatory framework for the crypto market during a crypto forum in Russia. Chebeskov acknowledged that many citizens currently hold various cryptocurrencies, and the ministry has been discussing comprehensive regulation for the crypto industry for several years.
This shift in perspective represents a significant change from the ministry’s previous position on crypto, especially before Western sanctions were imposed on Russia. In 2016, the ministry advocated for severe penalties, including up to seven years of imprisonment, for Bitcoin trading and mining. At that time, the stringent regulations were justified by concerns about cryptocurrencies posing a threat to the Russian ruble.
However, as Russia faced isolation from Western markets due to sanctions, the country began embracing crypto as a means to bypass economic restrictions and foster partnerships with Asian countries. In fact, major Russian metal producers have recently started using stablecoin USDT for cross-border transactions with China, despite warnings from the U.S. Treasury Department regarding sanctions enforcement on entities facilitating such evasion.
This change in stance reflects Russia’s recognition of the potential economic benefits that the crypto industry can bring. The Ministry of Finance now views the crypto industry as a “locomotive” for Russia’s economic development, signaling a more positive and supportive approach towards cryptocurrencies.
