At the beginning of the year, cryptocurrency took a front-and-center role in the wake of Russia’s invasion of Ukraine. As the Russian government saw speedy sanctions from around the world, many feared it could turn to crypto to subvert these penalties. While this debate was over only shortly after it had begun, new Iran crypto imports have proven crypto really does have the power to help countries out of sanction jams. Russian officials are starting to take note.
Being a mostly unregulated market, crypto is very attractive for criminals. One aspect in particular is the presence of mixers and privacy coins — tools used to ensure nobody can track one’s transactions. This has led to actions like the U.S. Treasury’s sanctions against Tornado Cash, for example, a piece of news that has brought with it a lot of blowback.
With the invasion of Ukraine, several nations turned against Russia through sanctions on imports and exports to and from the country. But with these sanctions came worry that Russia would turn to crypto, with its lack of regulations and ease of anonymity, to avoid sanctions. Lots of crypto commentators denied the possibility of sanction evasion on such a scale through digital assets.
Either way, it appeared Russia was not interested in crypto to begin with. While Russian President Vladimir Putin toyed with capitalizing on the country’s crypto mining capabilities, he signed a bill into law banning crypto transactions in July.
But, could Russia be softening its stance? In the wake of Iran’s new embrace of the technology, an official of the European nation wants to mirror the country’s crypto imports.
Iran Crypto Imports Could Inspire Russia to Follow
In early August, Iran crypto imports became the newest talking point surrounding crypto and sanctions. Since 1979, the U.S. has been placing increasingly strict sanctions on the nation. Now, it is getting around these sanctions with crypto, and a Russian official is voicing his admiration.
Earlier this month, Iran announced its first order for imports with cryptocurrency. It spent $10 million on these imports. As of yet, the government has not revealed which currency it used nor the recipient of these transactions. An Iranian official has made known its plan to continue these purchases specifically to get around sanctions.
This week, investors are seeing the Iranian government doubling down on this plan. The Industry, Mines and Trade Ministry has just approved any Iranian business to import materials using cryptocurrency. The government has also established dozens of crypto mining operations to help it fund imports.
The Russian government is taking notice of this news, and it could very well be rethinking its bearishness on crypto. Russian Prime Minister Mikhail Mishustin is voicing his support for cross-border crypto payments.
In a statement at a Russian economic forum, he noted the power of digital assets in securing goods from other countries without penalty. “We need to intensively develop innovative areas, including the adoption of digital assets,” he said. “This is a safe alternative for all parties that can guarantee uninterrupted payment for the supply of goods from abroad and for export.”
Mishustin’s comments came just hours after the news from Iran. It’s very likely he took inspiration from the decision before pitching Russian economists on crypto imports and exports. As CoinTelegraph notes, several other economic leaders in the country have expressed interest in adopting crypto for similar purposes.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
