Russian Finance Ministry staffer calls crypto a ‘locomotive’ for development

The Russian Ministry of Finance, which recommended prison sentences for Bitcoin trading in 2016, now says the crypto industry is a “locomotive” for Russia’s economic development.

The Russian Ministry of Finance sees the crypto industry as a driver of economic development, Russian state news agency TASS reported, citing Ivan Chebeskov, director of the ministry’s financial policy department. Speaking at a crypto forum in Russia, Chebeskov highlighted the ministry’s long-standing efforts to create a regulatory framework for the crypto market.

“As the Ministry of Finance, we have been working for many years to create regulations suitable for the crypto market. This is not just because it is our duty; “We wholeheartedly believe that the crypto sector is the locomotive for the development of our economy, digital technologies and, most importantly, the potential of our young people who are passionate and dedicated to these tasks.”

Ivan Chebeskov

Chebeskov noted that the ministry has been discussing comprehensive regulations for the crypto industry for several years and recognizes that many citizens own various cryptocurrencies.

The latest statements represent a U-turn from the ministry’s previous stance on crypto; This is especially evident in his reaction to Russia before Western sanctions were imposed. For example, in 2016, the ministry advocated imprisonment of up to seven years for Bitcoin trading and mining. This strict regulation was justified at the time by concerns about the competition posed by cryptocurrencies against the Russian ruble.

But as Russia finds itself isolated from Western markets due to sanctions, the country has increasingly turned to cryptocurrencies to bypass economic restrictions and engage with partners in Asia. As Crypto.news previously reported, two major Russian metal producers have begun using stablecoin USDT for cross-border transactions with China, amid warnings from the U.S. Treasury Department to impose sanctions on entities that facilitate such smuggling.