Russia Legalizes Cryptocurrency for Mining and Cross-Border Payments with China, Eyes Garantex for Sanctions Evasion

Sep 6, 2024, 07:45 AM

Russia has announced a significant policy shift by legalizing cryptocurrency for mining and cross-border payments, amidst increasing pressure from Western sanctions. The move aims to leverage digital currencies to enhance bilateral trade with China and reduce reliance on traditional financial channels. The State Duma’s Financial Market Committee has indicated that national digital currencies might be used for these bilateral settlements. Blockchain analysts at Chainalysis have raised concerns that Russia could potentially use domestic crypto exchanges like Garantex to evade sanctions. Garantex has reportedly handled nearly $100 billion in transactions. Additionally, the digital ruble is set to be introduced in 2025.