A Russian “crypto ban” is set to be voted on by lawmakers in the country, with the potential rollout as early as September 1. The ban will focus on restricting the circulation of cryptocurrencies in Russia, with some exceptions for digital financial assets issued within the country, including bank-issued blockchain-powered digital coins and the Central Bank’s digital ruble project. While there have been calls for a “total” ban on crypto similar to China’s approach, the new bill is likely to take a more compromise approach, allowing exemptions for miners, mining pools, and test projects under the supervision of the Central Bank.
The Central Bank has indicated its readiness to make concessions for firms struggling with overseas trade due to sanctions, but Governor Elvira Nabiullina has emphasized that crypto should not become a part of the official Russian economy. The bill aims to crack down on illegal crypto exchanges operating outside the Central Bank’s regulations, protecting businesses from potential Western sanctions. It appears that the ban will focus on the organization of circulation rather than prohibiting the use of cryptocurrencies altogether. However, there is still uncertainty about how the ban will impact Russian crypto users and transactions within the country.
Several British men have been charged under a new national security law for supporting Russia through an arson attack on a Ukraine-linked business. This incident highlights the potential consequences of geopolitical tensions on individuals involved in activities perceived to support certain countries. In the context of the proposed Russian crypto ban, there may be increased scrutiny on transactions and activities that could be seen as supporting or circumventing the government’s regulations. This could lead to challenges for Russian crypto users and businesses operating within the country.
Russian crypto experts have suggested that the ban could involve restrictions on transactions involving Bitcoin and other cryptocurrencies, aiming to reinforce the status of the Russian ruble as the only legal monetary unit in the country. The bill is expected to face little opposition in the State Duma, as long as it has the support of the Central Bank and government ministries. Lawmakers have emphasized the need for the ban to prevent cryptocurrencies from becoming a de facto substitute for the national currency, citing the importance of maintaining the legitimacy of the ruble within the Russian economy.
While there are concerns about the potential impact of the ban on Russian crypto users and businesses, some lawmakers have noted the protective nature of the proposed measure in the face of Western sanctions. The ban on the organization of crypto circulation is viewed as a protectionist measure that aims to regulate the sector under the Central Bank’s supervision. The law is expected to undergo revisions in the future, suggesting that there may be room for adjustments based on the evolving regulatory landscape. With Rosfinmonitoring closely monitoring domestic crypto users and urging the government to expedite crypto regulation, the impending ban could have significant implications for the Russian crypto industry.
