Russia’s Ministry of Finance, which in 2016 suggested imprisonment for trading Bitcoin, now says the crypto industry is a “locomotive” for Russia’s economic development.

Russia’s Ministry of Finance sees the crypto industry as a driving force for economic development. Ivan Chebeskov, director of the financial policy department at the ministry, highlighted the ministry’s long-standing efforts to establish a regulatory framework for the crypto market during a recent crypto forum in Russia.

“We at the Ministry of Finance have been working for many years to create appropriate regulations for the crypto market. This is not just because it’s a task we have; we genuinely believe that the crypto industry is a locomotive for our economy’s development, digital technologies, and, most importantly, the potential of our youth who are passionate about and dedicated to these tasks.”

Chebeskov noted that the ministry has been discussing comprehensive regulation for the crypto industry for several years, acknowledging that many citizens hold various cryptocurrencies.

The latest statements represent a significant change from the ministry’s previous stance on crypto, particularly evident in its response before Western sanctions were imposed on Russia. For instance, in 2016, the ministry advocated for penalties of up to seven years imprisonment for Bitcoin trading and mining. That stringent regulation was justified at the time by concerns about the competition posed by cryptocurrencies to the Russian ruble.

However, as Russia found itself isolated from Western markets due to sanctions, the country increasingly turned to crypto as a means to circumvent economic restrictions and engage with partners in Asia. For example, two major Russian metal producers have begun utilizing stablecoin USDT for cross-border transactions with China amid warnings from the U.S. Treasury Department regarding sanctions enforcement on entities facilitating such evasion.

For more updates on the evolving landscape of cryptocurrencies in Russia and beyond, stay tuned to Global Crypto News.

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