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Source: Chainalysis; Compilation: Deng Tong, Bit Chain Vision Realm
In order to cope with the increasing financial pressure brought about by Western sanctions, Russia has promulgated an important legislation to legalize cryptocurrencies mining and allows the use of cryptocurrencies for international payment.According to Bloomberg, the bill was signed by President Vladimir Putin on August 8th, and the encrypted payment test was scheduled to start this month.
This is very different from the previous position of the government. The Russian Central Bank (CBR) has promoted the full ban on cryptocurrencies in 2022.The new law will take effect on cross -border payment in September, and in November, the mineral mining of cryptocurrencies will take effect, which will enable Russian companies to use cryptocurrencies for international trade and authorize the approval of physical mining digital assets.
Putin called on Russia to “don’t miss the opportunity” to regulate cryptocurrencies, emphasizing that the role of cryptocurrencies in global payment is increasing and may reduce dependence on the US dollar.Including Anton Gorelkin, the author of the bill, and the main officials of Elvira Nabiullina, the governor of the Russian Central Bank of China, clearly acknowledged that the change of legislation was designed to reduce sanctions to reduce sanctions.The influence and promote international payment.
Russia’s attitude towards cryptocurrencies changes
Despite recently introduced relevant legislation, Russia still prohibits the use of cryptocurrencies for domestic payment.However, this did not suppress the extensive use of cryptocurrencies in the country.In fact, Russia has always ranked among our annual global cryptocurrency adoption, which is consistent with our widespread observation, that is, it is often invalid to completely ban cryptocurrencies, because they have not significantly suppressed use, but pushed them to it to them.Informal or less regulatory channels.
At the same time, before the recent legislation, bank services related to cryptocurrencies have also shown up in Russia.According to the “Business News”, Russia’s Russian Bank of Russia (Rosbank), a subsidiary of Vladimir Potanin, Russia, paved the way for corporate cross -border cryptocurrency payment last June.Furniture also launched similar services.
Avoid sanctions through cross -border payment
The Russian central bank is leading the integration of cryptocurrencies into the Russian cross -border payment financial system to create an experimental infrastructure that allows approved Russian companies and entities to use digital currencies for international trade.According to official statements, approved mining entities will also be allowed to use cryptocurrencies to settle transactions.
These recent cryptocurrency legislative efforts are part of Russia’s widespread efforts to develop alternative payment mechanisms to reduce the pressure of Western sanctions and reduce dependence on the US dollar. This has always been the long -term goal of Russia, especially in geopolitical tensions.In the case of exacerbation.
Central Bank of Russia: a new scope of supervision power
The new legislation has consolidated the control of cryptocurrencies in Russia, enabling them to closely supervise and monitor these transactions.Although the Central Bank of Russia is still testing its central bank’s digital currency (CBDC), digital rubles are expected to be launched in 2025, the legislation allows the existing cryptocurrency under the supervision of the central bank.
Russia has been exploring various methods to avoid the US -led financial system, including blockchain -based measures cooperating with the BRICS community, and stable coins that may cooperate with Iran to launch gold support.Russia’s Central Bank Financial Information System (SPFS) -The system of Russia’s replacement of SWIFT financial information system -it is another key component of the strategy, although its use is still limited.
The exchange may handle international transactions
According to Bloomberg, the authorities are exploring the method of legalizing the cryptocurrency exchange.”We haven’t found a solution yet.” However, according to the Russian news media “Business News”, Russia is promoting the launch of two new cryptocurrency exchanges in St. Petersburg and MoscowPlan.According to reports, the St. Petersburg Exchange will be supported by the infrastructure of the St. Petersburg Money Exchange (SPCE). Although according to the National News Agency Interfax report, SPCE denies participation.Despite the contradictions in regulatory, Russia already has a booming cryptocurrency ecosystem.
Some of the largest non -KYC exchanges in Russia, such as Tetchange, 100BTC, Bitzlato, Suex, and GARANTEX, are located in the Federal Building or nearby.Inside.Although some of these services (such as Suex OTC) have reduced activities after being designated by the US Ministry of Finance, other services (such as Garantex) still maintain a stable operating level.
GARANTEX is the core participants in the Russian appropriate currency market. Although the United States and the United Kingdom are specified by the Foreign Asset Control Office (OFAC) and the Financial Sanctions Office (OFSI), it may continue to play an important role.This centralized exchange (CEX) handles a large number of transactions of Russia and Iran’s designated participants, proving its effectiveness in evasion of sanctions.According to new legislation, given the deep liquidity of GARANTEX on the main blockchain, the Russian government can formally or informally use services such as GARANTEX.Although GARANTEX has dealt with nearly $ 100 billion in transactions since 2018, this large -scale activity is not necessarily equivalent to the large -scale evasion of sanctions supported by the state, and should be carefully evaluated.It is worth noting that not all GARANTEX users are Russian citizens or live in Russia, and they do not represent the Russian government.In addition, a large number of evasion of sanctions occurred outside the official government channels and performed through traditional links, such as private investment instruments and offshore shell companies.
Another exchange that can use cryptocurrencies to evade sanctions is EXVED, which is closely collaborated with Indefi Bank, which was co -founded by the founder of GARANTEX, Sergey Mendeleev and former KGB officials and media tycoon Alexander Lebedev.EXED has been promoting import and export even before the new legislation was promulgated.
In addition, according to the Indefi white paper and news reports, Indefi, which provides extensive DEFI products such as income farming and Lightning Loan, has participated in the efforts to launch the stable coin supported by rubles on the Ethereum network.
In the context of the changing legislative position, Russia’s cryptocurrency business has achieved the success of the ginseng.On the one hand, GARANTEX represents a successful story, while other global exchanges withdrew from the Russian market on the grounds of compliance, and some local exchanges were even completely closed.Last year, Binance sold its Russian business to Commex, which suspended the service earlier this year, which reflects the widespread challenge facing Russia after the full invasion of Ukraine in February 2022.
Although it is difficult to quantify the true impact of certain sanctions, Russian officials have pointed out that the fact that sanctions on Moscow’s impact on cross -border trade capabilities show that this impact is sufficient to stimulate people’s sense of urgency, make it legalize and invest in condemnation of condemnationAlternative payment channels.
Cryptocurrencies that can be used for payment
According to the “Businessman”, Russia is planning to launch stable coins in RMB and BRICS countries, and is supported by the new Tarry Currency Exchange developed by St. Petersburg and Moscow.In addition, considering the liquidity and global popularity of centralized stable coins such as USDT and USDC, they may also consider using them, but their centralized control and regulatory response capabilities will bring interruption risks.Once digital rubles are launched, it may also play a role, but in view of the severe economic sanctions on Russia, other countries are still uncertain about its attractiveness.Finally, the entity that is approved for mining may minimize Bitcoin. Bitcoin is still very liquid and popular in the world.
The scale challenge of sanctions on the chain
Russia’s ability to integrate cryptocurrencies into its financial system may improve its ability to bypass the US -led financial system and engage in non -US dollar denomination trade.However, in view of Russia’s total foreign exchange reserves slightly lower than 500 billion US dollars, about $ 300 billion, euro, and pounds are still frozen, and large -scale chain sanctions avoidance is still impossible.As we discussed earlier, the current cryptocurrency market has no liquidity at all to accommodate such large -scale transactions.
Although the possibility of avoiding sanctions on a large scale at the national level, small -scale sanctions and avoidance on the chain may still have a significant impact on national security, compliance and investigation.The government -affiliated actors who may try to use the new progress include the fundraising of the Ukraine’s pro -Russian militants, the assistant who helps the oligopoly and other political public figures, or the Russian instant exchange providers without KYC as the sanctions are sanctions.Russian banks provide in -and -out channel services.These small -scale activities may have a significant impact, highlighting the wider security and compliance risks related to such transactions.
Below we can see the interface of the Russian instant exchange dealer.
Users can transfer it from the accounts of the sanctions (such as Sberbank) without having to perform any KYC and redeem cryptocurrencies.This means that users can effectively avoid the legal currency ban on sanctioned Russian banks.
Russia’s attitude towards cryptocurrencies is a careful response to Western sanctions, focusing on a replacement financial system that does not rely on the US dollar.The success of this measure will depend on how Russia effectively overcome regulatory obstacles, manage sanctions, and establish necessary infrastructure and foreign partnerships to support these transactions.
Impact of encrypted mining bills
In addition to supporting the economy during war,Russia also tried to surpass the United States as a global leader in the field of cryptocurrency mining.
The recent encrypted mining bill introduced the structured framework of cryptocurrency mining, and created a registered registration book that allows Russian legal persons and entrepreneurs to engage in mining activities.The framework aims to standardize a large number of mining business, and small mining companies under energy consumption restrictions will not be considered.The language in the early draft of the mining bill was deleted, which showed that the authorities might try to avoid adopting actions that would have adversely affected Russia’s cryptocurrency ecosystem.In particular, the Russian news media RBC reported with Kremlin’s alliance reported that the final version of the bill was deleted to prohibit organizational cryptocurrency transactions from being prohibited to avoid the might be closed on the Russian center exchanges, and provided the miners with activity monetization of its activity.Legal approach.
According to new laws, miners must report their activities to local financial monitoring agencies Rosfinmonitoring and provide wallet address to the security department, so as to effectively legalize their operations under national supervision.This regulatory measure has also triggered important issues on the classification of cryptocurrency mining abroad, especially considering the extensive sanctions implemented by the United States and Europe on the implementation of Russian energy departments.Although international sanctions on Russia’s energy resources continue to continue, Russia’s authorization and supervision of cryptocurrency mining shows its strategic consistency with national interests.
Next step: the impact on the authorities, Vasp and TRADFI
Although these legislative changes may enhance Russia’s ability to participate in international trade through cryptocurrencies, it may also improve the vigilance of the United States and EU authorities -especially about trading risks and some more important trading partners with Russia (such as China and and RussiaIran) connection.As these bills increase the connection of global trade, Western authorities may continue to focus on monitoring and reducing risks related to financial activities on the chain and under -chain financial activities under the sanction entity.
More widely, from Venezuela to Russia to Iran, many countries that have been severely sanctions have always tried to use alternative payment mechanisms including cryptocurrencies to bypass sanctions -this method is full of challenges.The transparency of blockchain technology enables investigators to monitor and destroy the flow of capital in real time.Wallet addresses related to the entity related to CEX, mining services and other chains can be recognized, attributed and may be sanctions.In addition, the liquidity limit of the cryptocurrency market means that trying to transfer a large amount of assets to the chain may attract the attention of blockchain observer, and even destroy the stability of the entire market.
For virtual asset service providers (VASP) and traditional financial institutions, these developments highlight the importance of strengthening the due diligence of Russian mining entity transactions.Overall, these changes make it more difficult to deal with CEX and Russian entities, which is consistent with the risk of Russia’s risk since the full invasion of Ukraine in Russia.
CHAIINALYSIS’s chain data, monitoring and investigation tool kits enable investigators and compliance professionals to actively monitor these networks and take destructive actions, making it increasingly difficult to abuse cryptocurrencies to avoid sanctions.
Russia’s timetable for digital asset positions
