Recently, top lawmakers in Russia have confirmed that a “crypto ban” could be implemented as early as September 1st. This ban would involve prohibiting the organization of the circulation of cryptocurrencies in the country, with only digital financial assets issued in Russian jurisdictions being exempt from the new law. The bill is expected to pass without significant opposition in the State Duma, as it has the backing of the Central Bank and government ministries.
The Central Bank of Russia has previously advocated for a total ban on cryptocurrencies, similar to the approach taken by China. However, this proposal was met with resistance from other ministries, who prefer a more regulated approach to crypto similar to Western countries and Japan/South Korea. The new bill seeking to ban the organization of crypto circulation in Russia appears to be a compromise between these opposing views.
According to Anatoly Aksakov, the Chairman of the State Duma Committee on the Financial Market, exceptions to the ban will be made for miners, mining pools, and certain test projects under the supervision of the Central Bank. While some Russian firms are already using crypto for international trade, Governor Elvira Nabiullina has emphasized that cryptocurrencies should not officially enter the Russian economy.
Impact on Russian Users
The potential ban on organizing crypto circulation in Russia could have significant implications for the millions of Russian crypto users in the country. While the final bill has not been announced, there is speculation that Russian banks may be required to refuse crypto exchange-related transactions, further isolating local users from the global crypto market.
Deputy Chairman of the State Duma Committee on Information Policy, Anton Gorelkin, provided a slightly different perspective on the ban. He mentioned that the bill would not prohibit the circulation of cryptocurrencies in Russia, but rather focus on cracking down on illegal crypto exchanges operating outside the Central Bank’s new experimental legal regime. This regulatory approach aims to protect businesses from potential Western sanctions.
Future Revisions and Enforcement
Gorelkin highlighted the possibility of future revisions to the ban on organizing the circulation of crypto assets, suggesting that the law could evolve over time. It is anticipated that the Central Bank’s experimental legal regime will oversee the sale of industrial crypto miners’ coins to overseas buyers, while the anti-money laundering regulator, Rosfinmonitoring, keeps track of domestic crypto users.
The impending Russian crypto ban is a complex issue with potential implications for both the local crypto community and international stakeholders. The final version of the bill and its enforcement mechanisms will determine the extent of its impact on the Russian economy and global crypto markets.