IMF Fears Russia Could Bypass Sanctions with Bitcoin Mining

The International Monetary Fund (IMF) believes that Russia can avoid economic sanctions through cryptocurrency mining. The country is able to use its huge energy advantage to mine cryptocurrencies and generate income, the organization said in a report. Per the document:

“In the future, countries hit by sanctions may start allocating more resources to evade sanctions through mining. Mining energy-intensive cryptocurrencies, such as bitcoin, could allow countries to monetize energy resources, some of which cannot be exported because of sanctions.”

The international organization acknowledges that the proportion of mining businesses in countries subject to international sanctions, as well as the total amount of mining revenue, indicates that “the scale of such cash flows is relatively small, although risks to financial integrity remain.”

The reason for the concern that Russia will try to avoid the sanctions it faced after launching a “special military operation” in Ukraine by using cryptocurrency is related to the country’s growing interest in the cryptocurrency market and recent comments by prominent Russian figures.