Russia’s Ministry of Finance, previously known for suggesting imprisonment for Bitcoin trading in 2016, now acknowledges the crypto industry as a “locomotive” for the country’s economic development.
As reported by Russian state news agency TASS, Ivan Chebeskov, the director of the financial policy department at the Ministry of Finance, stated that Russia’s Ministry of Finance sees the crypto industry as a crucial driver of economic growth. Chebeskov made these remarks during a crypto forum in Russia, emphasizing the ministry’s ongoing endeavors to establish a regulatory framework for the crypto market.
“We at the Ministry of Finance have been working for many years to create appropriate regulations for the crypto market. This is not just because it’s a task we have; we genuinely believe that the crypto industry is a locomotive for our economy’s development, digital technologies, and, most importantly, the potential of our youth who are passionate about and dedicated to these tasks.”
Ivan Chebeskov
Chebeskov mentioned that the ministry has been engaging in discussions about comprehensive regulation for the crypto industry for numerous years. He also acknowledged that a considerable number of citizens in Russia own different cryptocurrencies.
The recent statements indicate a significant shift from the ministry’s previous stance on crypto, particularly noticeable in its response prior to Western sanctions against Russia. For instance, in 2016, the ministry pushed for penalties of up to seven years imprisonment for Bitcoin trading and mining. This strict regulation was justified at that time due to concerns about cryptocurrencies posing competition to the Russian ruble.
However, with Russia facing isolation from Western markets due to sanctions, the country has increasingly turned to crypto as a way to bypass economic restrictions and engage with partners in Asia. A recent report revealed that two leading Russian metal producers have started using the stablecoin USDT for cross-border transactions with China. This move comes despite warnings from the U.S. Treasury Department about enforcing sanctions on entities involved in such activities.
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