The Russian government is reconsidering its stance on crypto exchanges, with lawmaker Anton Gorelkin claiming that there is growing concern among lawmakers about plans to shut down domestic crypto exchanges. The government has been at odds with ministries and the Central Bank on crypto-related policies for years, leading to an impasse in regulating the crypto mining industry and other sectors. President Vladimir Putin recently urged lawmakers to fast-track crypto mining legislation, leading to the proposal of two bills before the end of the current parliamentary session on August 5. Despite the Central Bank’s desire to create a crypto exchange ban, lawmakers are now considering excluding a clause that would ban the organization of cryptocurrency circulation due to concerns raised by industry representatives.
Lawmakers in Russia plan to uphold a proposed ban on the advertisement of crypto-related products and services in the country, while also considering allowing companies to use crypto as a settlement tool in international trade. The Energy Committee of the State Duma is expected to reject a proposal to cap the amount of electricity available for private individuals to power crypto mining rigs. Proposals to completely ban individuals from mining crypto have also not passed the committee stage. There is also a push to create a government-approved sandbox for companies to use crypto in cross-border trade, although details about the sandbox are not publicized in order to avoid playing into the hands of opponents.
Both a mining bill and a bill on the launch of a sandbox for crypto trades have passed their first readings in the Duma, but lawmakers are facing a race against time to meet their deadline for a second and third reading. The Financial Markets Committee has stated that the sandbox bill is ready for a second vote, and a regulatory framework for settlements made in digital currencies is also set to be included in the bill. Lawmakers are expected to vote on the bill on July 30, with Putin previously stating that crypto mining accounts for 1.5% of Russia’s energy usage and suggesting that regions should be given the power to issue local bans on mining.
The Russian government’s reconsideration of the crypto exchange ban is a significant shift in policy that could potentially allow for the regulation of the crypto mining industry and other sectors. Lawmakers are now focusing on passing two bills related to crypto before the end of the current parliamentary session, with discussions ongoing about the details of a sandbox for companies to use crypto in international trade. The ban on crypto ads in Russia will still be upheld, but the proposals to limit electricity for individual miners and completely ban crypto mining have not been passed. Lawmakers face a tight deadline to pass the necessary legislation if they want to regulate the crypto sector effectively.
