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Russia Set to Trial Cross-Border Crypto Payments
Putin signs new law legalizing crypto payments for international trade.
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Russia is set to trial cross-border crypto payments, in a move that's likely designed to bypass international sanctions, but experts are skeptical about their ability to evade detection.
What’s the scoop?
- Legislation Passed: Russia's new law, signed by President Vladimir Putin, allows for cross-border crypto payments while maintaining the ban on using crypto as legal tender within the country.
- Experimental Regime: The law grants the Russian central bank the authority to oversee an "experimental" regime, though the exact parameters and rules remain undefined.
- Sanctions Evasion: Russia's new legislation aims to evade Western sanctions from its Ukraine invasion, but blockchain traceability and secondary sanctions remain big hurdles, CoinDesk notes.
Bankless Take:
Though this certainly does not play well for optics going into a legislatively-busy September, Russia's move to use crypto for avoiding sanctions may not be as effective as they hope. With blockchain analytic companies like Chainalysis and TRM Labs already working with governments to navigate onchain flows, the West will likely have the intelligence to institute effective countermeasures. However, this continues Russia’s foray into crypto following its legalization of crypto mining last month.
Russia Legalizes Crypto Mining on Bankless
The Duma passed a law to fully legalize crypto mining starting in November.
David C