Russian companies accepted Bitcoin for international trade amid Western sanctions

Russian Finance Minister Anton Siluanov announced on Wednesday that domestic companies are now using bitcoin and other digital assets for international payments, thanks to recent legal adjustments designed to offset Western sanctions.

These sanctions have created challenges for Russia's trade with key partners such as China and Turkey, as domestic banks take a cautious approach to avoid a regulatory backlash from the West.

Siluanov in a statement to the Russian 24 TV channel.

“As part of the experimental regime, it is possible to use the bitcoins that we have minted here in Russia (in foreign trade transactions). Such transactions are already happening. We believe that they should be expanded and developed. I am sure that this will happen next year.”

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Putin supports Bitcoin as an alternative

President Vladimir Putin said earlier this month that the US administration's use of the dollar for political purposes was diminishing its role as the world's reserve currency. This in turn has led many countries to explore alternative assets. He expressed his opposition to global regulation, highlighting Bitcoin as a prime example. These comments mainly point to Putin's growing support for cryptocurrencies.

As recently reported by Megaphone, Russia's price increase to over $100,000 has fueled international excitement. Regulatory changes and global trends have contributed to this growth. Megafon's research also showed that visits to the top 20 exchanges worldwide increased by 8%-10% monthly, with Russian users accounting for 27%-30% of the total traffic.

Expansion, cracking and extended winter restrictions

This year, Russia has stepped up its efforts to legalize mining activities in order to strengthen its position as one of the top Bitcoin mining countries in the world by allowing the use of cryptocurrency in foreign trade.

Russian authorities have recently stepped up their crackdown on illegal crypto-mining, focusing on the Irkutsk region. The Irkutsk Electric Grid Company, in cooperation with law enforcement agencies, shut down an unregistered operation using more than 200 ASIC tips, consuming 600,000 kWh every month – the equivalent of 80-100 homes. Despite being registered as a business, it allegedly failed to meet the requirements of the crypto-mining registry.

This comes after Russia extended its winter crypto-mining ban to 2031, targeting regions such as Dagestan, Chechnya and Siberia. From January 2025, the ban will affect mining's peak energy periods. Crypto mining consumes 1.5% of national power, causing imbalances in electricity bills and grid pressure.