Chainalysis Accuses Russia of Leveraging Crypto to Evade Western Sanctions

With Russia grappling with economic pressures from Western sanctions, the nation has enacted laws that allow crypto mining. And as international payments using digital currencies.

Russia Turns to Cryptocurrency

According to Blockchain analytics firm Chainalysis these moves of Russia could help it circumvent sanctions. And, maintain foreign trade amid financial restrictions. President Vladimir Putin signed into law a recent legislation that allows Russian businesses to facilitate cross-border transactions using cryptocurrencies.

“The CBR is spearheading the initiative to integrate cryptocurrency into Russia’s financial system for cross-border payments, creating an experimental infrastructure that allows approved Russian businesses and entities to use digital currencies for international trade. It will also allow approved mining entities to use crypto to settle trades,”. The blockchain security firm said in its blog post, citing “official statements” as its sources.

Furthermore, Chainalysis shared that even though as of now Russia has prohibited using digital currencies for domestic payments. The nation has ranked highly in global crypto adoption. It also shared that platforms like Garantex, a major Russian crypto exchange, have upped their game in facilitating crypto transactions. Garantex has helped facilitate billions in transactions linked to sanctions-designated actors in Russia and Iran.

As of now, the Central Bank of Russia is also exploring crypto alternatives to the SWIFT financial messaging system.

RSPP President Pushes for Crypto in Foreign Trade

In a recent development Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs (RSPP) advocated using digital currencies in foreign trade. “It is important to ensure a real opportunity to use any reliable digital currencies and digital rights in foreign economic activity, including cryptocurrencies, stablecoins, operating on the basis of blockchain and cryptography,” Shokhin said in a recent statement.

“It is also necessary to continue active work on the implementation of settlements in foreign economic activity based on tools and mechanisms tied to goods that can perform the functions of measures of value,” the RSPP president further said in a statement to Russian media TASS.

Shokhin also opined that currently, Russia faces problems when receiving payments from non-residents. This is while making payments in favor of non-residents. “Companies are considering different scenarios for solving this problem – using intermediaries, offsetting counterclaims under export and import contracts,” Shokhin shared.

He stressed the importance of using reliable digital currencies and digital rights in foreign economic activity. He talked about cryptocurrencies, and stablecoins, operating on the basis of blockchain and cryptography. “It is also necessary to continue active work on the implementation of settlements in foreign economic activity based on tools and mechanisms tied to goods that can perform the functions of measures of value, means of exchange and storage of value metals, grain, energy, etc.”

Last week The Shib Daily reported that Russia is yet to decide on the creation of cryptocurrency exchanges. Experts in Russia noted that the nation is upping its guard to establish specific rules for crypto exchanges. People expected Russia to have already launched two new crypto exchanges.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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