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Langgam Pos - Russia has faced significant delays in international payments with major trading partners after coming under pressure from Western regulators.
Russian lawmakers have passed a bill that will allow businesses to use cryptocurrency for international trade as part of efforts to circumvent Western sanctions imposed following Russia's invasion of Ukraine.
The legislation is expected to come into effect in September. Elvira Nabiullina, the Governor of the Central Bank of Russia and one of the proponents of the new law, stated that the first transactions in cryptocurrency are anticipated to take place before the end of the year.
Anatoly Aksakov, head of the Russian parliament’s Financial Markets Committee, explained that Russia has experienced considerable delays in international payments with key trading partners such as China, India, and the United Arab Emirates after banks in these countries, under pressure from Western regulators, became more cautious.
“We have made a historic decision in the financial sector,” Aksakov said, as quoted by Yahoo Finance on Thursday (August 1, 2024).
Under the new law, the central bank will create new "experimental" infrastructure for cryptocurrency payments. Details of this infrastructure have not yet been announced.
The legislation is part of a broader package that also includes regulations on cryptocurrency mining and the circulation of other digital assets. The new law will not lift the existing ban on cryptocurrency payments in Russia.
The central bank noted that payment delays have become a significant challenge for the Russian economy, leading to an 8% decrease in Russian imports in the second quarter of 2024.
Although Russia is trying to shift to its trading partners' currencies and develop alternative payment systems within the BRICS group of emerging economies, many payments are still made in dollars and euros and through the international SWIFT system.
Russian Crypto Boss Sentenced to 18 Months in Prison – What’s the Story?
Previously, Anatoly Legkodymov, the founder of the Russian cryptocurrency exchange Bitzlato, was sentenced to 18 months in prison in the United States for operating an unlicensed money transfer business that covered illegal gambling proceeds and drug transactions totaling more than USD 700 million, equivalent to IDR 11.3 trillion (based on an exchange rate of IDR 16,200 per USD).
Legkodymov has been in federal custody since his arrest in January 2023 and was sentenced on Thursday by U.S. District Judge Eric Vitaliano in Brooklyn, New York. Legkodymov pleaded guilty in December.
Legkodymov admitted that for years, Bitzlato had been used as a channel for transactions related to the dark web, including the notorious Hydra Market, which was shut down by authorities in 2022.
Prosecutors from the U.S. Attorney’s Office in Brooklyn, led by Breon Peace, argued that Legkodymov, who owned and controlled Bitzlato, deserved at least a four-year prison term for creating a clearinghouse for dirty money.
“He continued to allow the exchange to operate even after being repeatedly warned that it had become a ‘haven for criminals, drug dealers, and ransomware extortionists on the dark web,’” Peace said, as quoted by Yahoo Finance on Thursday (July 25, 2024).
However, during the sentencing hearing, the judge described the Metropolitan Detention Center, where Anatoly Legkodymov is held, as a bad facility, which influenced the decision not to extend his prison term. Over the past five weeks, there have been two inmate murders at the facility.
Efforts to Combat Crypto Misuse
This case is part of a broader effort by the U.S. Department of Justice to combat criminal use of cryptocurrency and recover criminal proceeds through the National Cryptocurrency Enforcement Team.
Last year, Binance Holdings Ltd. and CEO Changpeng Zhao pleaded guilty to anti-money laundering and U.S. sanctions violations as part of a comprehensive settlement with the U.S., allowing the cryptocurrency exchange to continue operating.
Philippines Charges 2 Russians in Crypto Theft Case
Earlier, the Philippine Department of Justice (DOJ) announced last week that criminal charges have been filed against two Russian nationals for the theft of USD 6.2 million, or IDR 100.2 billion (based on an exchange rate of IDR 16,171 per USD), in XRP cryptocurrency from a local dealer.
The Russian defendants, Vladimir Evgenevich Avdeev and Sergey Yaschuck, face charges under Republic Act No. 10175, the 2012 Cybercrime Prevention Act, according to the charges filed in the Taguig Regional Court.
Avdeev and Yaschuck, former consultants for the Philippine crypto exchange Coins.ph under Betur Inc., are accused of infiltrating the company's system, resulting in the theft of 12.2 million XRP.
Coins.ph, which handles money transfers, remittances, and foreign exchange, identified the breach after noticing unusual login activity.
The platform’s investigation revealed the suspects' extensive knowledge of the network infrastructure and security measures.
Philippine Justice Secretary Jesus Remulla emphasized the DOJ's commitment to upholding the rule of law in cyberspace.
“It is the DOJ's mandate to ensure the rule of law is upheld at all times, and this applies to the cyberspace as well,” he said, as quoted by Bitcoin.com on Wednesday (July 17, 2024).
Exploiting Technological Advances
He warned about the evolving tactics of cybercriminals to exploit technological advancements and highlighted the importance of vigilance.
Avdeev faces 23 counts of cybercrime, with bail set at PHP 120,000 per charge, while Yaschuck faces three charges with the same bail provisions.
The suspects are alleged to have attempted to launder the stolen funds through various cryptocurrency platforms to obscure its origin and avoid detection.
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