Bank of Russia Rejects Idea of Using Cryptocurrency to Circumvent Sanctions – Regulation Bitcoin News

A proposal by the Central Bank of Russia to permit the use of digital currency for sanctions evasion has been rejected. As Western regulators already take steps to block such transactions, the monetary authority thinks this is unlikely.

Central Bank of Russia states that using Bitcoin to evade sanction is impossible

Bank of Russia says it’s impossible to use cryptocurrency to avoid financial restrictions due to Ukraine’s military conflict. That’s according to a statement by the central bank’s First Deputy Governor Ksenia Yudaeva, issued in a reply to a proposal by a member of the State Duma, the lower house of Russian parliament.

Anton Gorelkin is a Russian lawmaker who belongs to the ruling United Russia party. He suggested that Russian entrepreneurs and companies should have access to digital currency payments, as well as for settlements with foreign counterparts. In response to West-imposed sanctions, he believes that the Russian establishment of a national crypto infrastructure is necessary.

Officials at the Central Bank believe, however that it is impossible for Russian banks to transfer large amounts in cryptocurrency. Yudaeva was quoted as saying by the RIA Novosti News Agency that the EU, U.S.A, Japan, Singapore and Singapore regulatory authorities have already taken preventive actions.

She said that digital asset platforms like crypto exchanges have also adopted restrictions which prevent Russian users from accessing funds. Authorities are increasing the requirements for cryptocurrency service providers to comply with customer identification rules, even though crypto payments may not be banned in certain jurisdictions.

CBR, the Central Bank of Russia (CBR), is a staunch opponent of legalizing cryptocurrencies. In January, Russia’s financial regulator proposed that crypto-related transactions be banned in all of the country. The financial authority maintains that digital currencies decentralized like bitcoin can’t be used to pay for goods or services.

CBR is isolated from other government bodies in Moscow due to its hardline approach. In February, the federal government approved a regulatory plan based on the Finance Ministry’s concept which favors regulation under strict oversight, over prohibition.

Days before the Russian army crossed the Ukrainian border, the ministry submitted a new bill “On Digital Currency” tailored to comprehensively regulate the country’s crypto market. Alexander Yakubovsky from Russia, another Russian lawmaker, proposed that cryptocurrency could be used to help Russia regain its global financial access in March.

Are you expecting Bank of Russia’s attitude to cryptocurrencies to change if Western sanctions keep expanding? Please share your views on this topic in the comment section.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.