The Ministry of Finance in Russia, which previously proposed imprisonment for individuals trading Bitcoin in 2016, has now recognized the crypto industry as a driving force behind the country’s economic growth.
According to reports from the Russian state news agency TASS, Ivan Chebeskov, the director of the financial policy department at the ministry, emphasized the importance of the crypto industry for economic development during a crypto forum in Russia. Chebeskov highlighted the ministry’s ongoing efforts to establish a regulatory framework for the crypto market.
He mentioned that the ministry has been in discussions about regulating the crypto industry comprehensively for several years, acknowledging the fact that many Russian citizens hold various cryptocurrencies.
This shift in perspective marks a significant change from the ministry’s previous stance on cryptocurrencies, especially evident before Western sanctions were imposed on Russia. In 2016, the ministry had proposed penalties of up to seven years in prison for individuals involved in Bitcoin trading and mining, citing concerns about the potential competition that cryptocurrencies posed to the Russian ruble.
However, as Russia faced increasing isolation from Western markets due to sanctions, the country started turning to cryptocurrencies as a way to bypass economic restrictions and engage with partners in Asia. In fact, as reported by crypto.news, two major Russian metal producers have recently started using stablecoin USDT for cross-border transactions with China, despite warnings from the U.S. Treasury Department about enforcing sanctions on entities facilitating such evasion.
In other news, the Central Bank of Russia has noted a significant decline in Binance’s share among Russian web traffic.