Russia Is Considering Selling Its Oil and Gas for Bitcoin

Russia is considering accepting bitcoin as payment for its oil and gas exports as Western countries tighten sanctions over its invasion of Ukraine.

The chair of Russia’s Duma Committee on energy stated that Russia is willing to be more flexible with payment options when dealing with “friendly” countries like China or Turkey.

Chair Pavel Zavalny stated that the buyer’s national fiat currency and bitcoin considered alternative payment methods for Russia’s energy exports. The energy chair also reiterated President Vladimir Putin’s Wednesday promise to require “unfriendly” countries to pay for gas in Russian rubles. Putin’s announcement sent European gas prices soaring amid fears that the move would aggravate an already stressed energy market.

Russia is looking to diversify its currency holdings. Russia may be able to convert its energy reserves into hard assets that are used outside of the dollar system. Moreover, Russia now appears to be serious about abandoning the dollar.

Cryptocurrency Companies

Many cryptocurrency firms may force to close their doors in the United Kingdom if they fail to register with the finance watchdog by a key deadline next week.

Firms providing crypto services in the United Kingdom must register with the Financial Conduct Authority; FCA oversees how digital asset firms combat money laundering, beginning March 31.

Last year, the regulator extended the deadline; this allowed firms on a temporary register to continue trading while seeking full authorization; however, it will close once the deadline expires. According to the FCA, many crypto companies withdrew their applications because they did not meet anti-money laundering standards. Many insiders in the industry have expressed dissatisfaction with the FCA’s handling of the crypto register.

One lawyer advising crypto companies on their applications stated that the regulator was slow to approve applications and was frequently unresponsive; a sentiment shared by other industry figures.

From the FCA’s perspective, the process has been a total disaster. According to an FCA spokesperson, only 33 crypto firms’ applications have been approved thus far. More than 80% of the evaluated firms have withdrawn their applications or deni.

“We’ve seen many crypto assets businesses apply for registration that does not meet the standards there to help ensure firms are not using to transfer and or disguise criminal funds,” the spokesperson said.

According to Mauricio Magaldi, global strategy director for crypto at fintech consultancy 11:FS, the United Kingdom’s current regulatory direction puts the country at risk of falling behind the United States, the European Union, and other regions. Industry representatives are concerned that this will put the United Kingdom at a competitive disadvantage. It strives to be a global leader in financial innovation post-Brexit. The country has a thriving fintech industry, which attracted nearly $12 billion in investment last year.