Key Points
- Ukraine is planning to obstruct Russia’s use of Bitcoin and other cryptocurrencies for international trade.
- Russian companies are reportedly using cryptocurrencies to bypass Western sanctions.
Ukraine is preparing to hinder Russia’s utilization of Bitcoin and other digital currencies in foreign trade, with sanctions already being formulated.
The Ukrainian government has revealed strategies to implement “sanctions and other solutions” targeted at preventing Russia’s use of Bitcoin for international payments. This announcement came just a day after Anton Siluanov, Russia’s finance minister, openly verified that Russian companies are exploiting crypto to dodge Western sanctions.
Ukraine’s Stance on Crypto
Vladyslav Vlasiuk, an advisor to the Ukrainian president, stated that Ukraine had previously informed its international allies about Russia’s plans earlier this year. Measures to stop unwanted crypto payments are currently being developed, according to Ukrainska Pravda.
“We were, without exaggeration, the first to draw our partners’ attention to such plans of the enemy back in the summer. Appropriate sanctions and other solutions to block the possibility of using unwanted cryptocurrency payments are already being prepared,” said Vlasiuk.
Russia’s Crypto Adoption
Russia has been exploring alternatives to bypass sanctions that have affected its capacity to conduct and receive international payments, even with countries like China. Russian companies have started resorting to stablecoins like Tether’s (USDT) to execute cross-border transactions.
Several of Russia’s major metal producers have initiated the use of stablecoins for trade with Chinese clients, though the specifics of these trades’ volume remain uncertain. Sources have indicated that other alternatives are either much slower or could potentially result in an overseas bank account being frozen.
Siluanov’s disclosure comes a few months after the Kremlin established a legal framework for Bitcoin miners, which includes a provision allowing approved companies to use crypto for international trade.
