Ukraine eyes sanctions as Russia deepens crypto use

Ukraine will impose sanctions to disrupt Russia’s use of Bitcoin and other cryptocurrencies in foreign trade as tensions between the two countries continue to amplify. According to Vladyslav Vlasiuk, Advisor to the president of Ukraine and Commissioner for Sanctions Policy, efforts are already underway to implement targeted measures to block unwanted cryptocurrency payments, reported local media Ukrainska Pravda . “Are we at all surprised?” Vlasiuk was quoted as saying, adding that Ukraine had already alerted its trade partners earlier this year about the “plans of the enemy.” The government of Ukraine is aiming to counter Russia’s attempts to bypass Western sanctions through the use of digital assets like stablecoins and Bitcoin, and “sanctions and other solutions” are in development in this regard. Sanctions imposed by the United States and its allies have long affected Russia’s ability to trade with its global partners like China and Turkey, particularly following its 2022 invasion of Ukraine. Since then, the Vladimir Putin-led country has sought alternative options like cryptocurrencies to retain access to global markets. Russia’s crypto plans Vlasiuk’s remarks came less than 24 hours after Russian Finance Minister Anton Siluanov publicly disclosed that the country has been using Bitcoin and other cryptos in cross-border trades. Moreover, the minister stressed the government’s intention to intensify efforts to expand and develop this channel even further. Earlier this year, President Vladimir Putin signed into law a bill that allows local businesses to use virtual currencies for global trading even though the use of such assets as legal tender remains restricted within Russian borders. The law came into effect in September, but Russian companies had resorted to cryptocurrencies long before that. Bloomberg reported in May that some of the country’s top metal companies were using Tether-issued stablecoin USDT to settle their trades with Hong Kong. Russia’s newfound interest in cryptocurrencies was also evident from Putin’s comments during a speech at the Valdai Discussion Club, a Moscow think tank. With a nod to Bitcoin’s decentralised nature, Putin positioned digital assets as a low-cost and reliable alternative. Bitcoin’s role remains central to Russia’s plans, and the country has moved to regulate the mining sector by legalising it in August and subsequently implementing a 15% tax on income generated. The tax law also officially recognised cryptocurrencies as property. Ukraine to regulate crypto Crypto usage has surged across both Ukraine and Russia, according to an October Chainalysis report . While Russia has already taken the initial steps, Ukraine is mulling to introduce a draft law early next year. Earlier this month, the head of the Ukrainian Parliament’s Committee on Finance, Tax, and Customs Policy, Danylo Hetmantse, confirmed that the proposed law would regulate crypto transactions while also introducing a tax framework. Plans are to tax cryptocurrencies similarly to securities, applying standard tax rates without offering any exemptions or special deductions for digital asset transactions. The post Ukraine eyes sanctions as Russia deepens crypto use appeared first on Invezz