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Bank of Russia Rejects Idea of Using Cryptocurrency to Circumvent Sanctions

Bank of Russia Rejects Idea of Using Cryptocurrency to Circumvent Sanctions – A suggestion to allow the use of digital currency to bypass sanctions was rejected by the Russian Central Bank. This, according to the monetary authority, is unlikely to happen because Western regulators are now taking steps to prohibit such transactions.

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The Bank of Russia feels it is difficult to use cryptocurrencies to circumvent financial restrictions imposed as a result of the war conflict in Ukraine. That’s according to a statement published by the central bank’s First Deputy Governor, Ksenia Yudaeva, in response to a proposal by a member of the Russian parliament’s lower house, the State Duma.

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Russian enterprises and private entrepreneurs should be permitted to make payments in digital currencies, including for settlements with overseas partners, according to Anton Gorelkin, a legislator from the ruling United Russia party. In response to Western sanctions, he feels that the creation of a Russian national crypto infrastructure is unavoidable.

On the other hand, central bank officials believe that large-scale cryptocurrency transactions by Russian businesses are difficult. Yudaeva told the Russian news agency, RIA Novosti that regulatory authorities in the European Union, Japan, Singapore, the United States, and the United Kingdom had begun to take preventative measures.

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She went on to explain that digital asset firms, such as cryptocurrency exchanges, are putting in place restrictions that effectively prevent Russians from accessing their money. Authorities are putting increasingly rigorous client eligibility requirements on crypto providers, even in regions where crypto payments are not yet illegal.

The Russian Central Bank is a vocal opponent of the legalization of cryptocurrencies. In January, the country’s banking authority urged a total ban on crypto-related transactions. It claims that decentralized digital currencies such as bitcoin can’t be utilized to pay for goods or services.

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Because of its strong stance on the subject, the CBR has indeed been isolated among Moscow’s official institutions. In February, the federal government approved a regulatory framework based on a model proposed by the Finance Ministry, which favors strict regulation over prohibition.

The ministry submitted a new bill On Digital Currency days before the Russian army invaded the Ukrainian border, aimed at completely regulating the country’s crypto sector. Alexander Yakubovsky, a Russian senator working on impending crypto laws, indicated in mid-March that cryptocurrency could help Russia regain access to global banking.

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