Total Crypto Ban In Russia Imminent: Lawmakers Confirm Enforcement In 5 Months

Russian lawmakers have announced their intention to introduce restrictions on the circulation of crypto assets, which could be implemented as early as September 1. 

The Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, revealed that a vote on a ban on organizing cryptocurrency circulation will be held in the coming weeks. 

Crypto Restrictions In Russia

The proposed legislation aims to prohibit the establishment of digital asset exchanges and exchangers outside the experimental legal regime while allowing crypto assets issued within Russian jurisdiction, reflecting Russia’s desire to protect its domestic economy. 

Digital currency miners, mining pools, and Central Bank test projects would be permitted to operate within the experimental legal regime.

Anatoly Aksakov emphasized that the intention is not to ban the use of digital assets entirely, but rather to restrict the organization of their circulation within the country.

Aksakov also explained that the decision to restrict the circulation of digital assets is driven by the perception that cryptocurrencies are quasi-currencies competing with the Russian ruble. 

To maintain the ruble’s role as the nation’s official currency, restrictions on digital assets are deemed necessary. Aksakov’s statement further reads:

We are talking about the prohibition of operations with bitcoins and other cryptocurrency. Digital financial assets issued in Russian jurisdiction, digital rubles will be allowed. The need for a ban is due to the fact that today cryptocurrency – is a quasi-currency that replaces the ruble in the country. But only the Russian ruble fulfills the mission of the monetary unit, so this decision has been made. From September 1, a ban will be introduced.

Protecting Against Western Sanctions? 

The deputy chairman of the State Duma Committee on Information Policy, Anton Gorelkin, also argued that the ban on the organization of cryptocurrency circulation is a protective measure aimed at protecting Russia’s economic interests. 

Gorelkin contends that allowing the establishment of a domestic virtual currency infrastructure would potentially expose the country to Western sanctions. 

The lawmaker further states that the geopolitical landscape plays a significant role in shaping Russia’s stance on cryptocurrencies, with the ban serving as a precautionary measure to mitigate potential risks.

While the restrictions on cryptocurrency circulation will take effect on September 1, it is important to note that the door to revisiting these regulations remains open. 

Gorelkin did not rule out lifting the ban in the future. For now, however, the focus is on establishing a regulatory framework within the experimental legal regime and protecting the domestic economy.

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