Russia Legalizes Bitcoin Payments for International Trade Next Year

Russia's finance minister announced that the country has changed its legislation to allow companies to use Bitcoin and other digital currencies for international payments.

Russia has legalized the use of Bitcoin and other digital currencies for international payments, a move that comes amid Western sanctions and restrictions on the country's trade with several nations.

According to a report by Reuters, Russia's Finance Minister Anton Siluanov announced the legalization of cryptocurrencies for international payments during a government meeting on Friday, December 23.

Siluanov stated that companies in Russia are already using Bitcoin and other digital currencies for international payments, and this usage will expand in the future.

“We have legalized the use of digital currencies in foreign trade this year. We have also introduced a special experimental regime for the use of digital currencies in foreign trade, which is already being used,” Siluanov said.

“And, of course, such transactions will increase in the future. I have no doubt that next year such international payments in digital currencies will expand.”

Siluanov's announcement follows a broader legalization of cryptocurrencies in Russia this year, including the legalization of cryptocurrency mining. Russia is said to account for a significant portion of the global Bitcoin mining market.

The country's pivot to cryptocurrencies comes as Western sanctions and restrictions have impacted its ability to trade with several critical countries, including China and Turkey.

Local banks are reportedly hesitant to handle Russia-related transactions to avoid facing penalties from Western regulators, leading Russia to explore alternative methods for engaging in international trade.

In related news, President Vladimir Putin has spoken out in favor of cryptocurrencies, stating that the U.S. government's use of the U.S. currency for political purposes has weakened the currency and led many countries to consider alternative assets like Bitcoin.

“Being decentralized, it (Bitcoin) could, in principle, become a means of payment for international trade,” Putin said, according to TASS.

Meanwhile, Russia has also taken steps to regulate cryptocurrency mining in the country. Recently, the government announced a ban on crypto mining in 10 regions of Russia for a period of six years, beginning on January 1, 2025, and lasting until December 31, 2031.

The ban is intended to address electricity shortages in certain regions, where heavy mining activity contributes to high energy demands.

This move highlights Russia's mixed approach to cryptocurrencies, embracing them for international trade while simultaneously managing the energy consumption associated with mining operations.