- Russia plans to “ban” crypto Q3 2024, citing “geopolitical realities.”
- There are exceptions, like miners, to the proposed cryptocurrency ban.
Russia plans to enforce strict regulation on the circulation of cryptocurrencies like Bitcoin [BTC] from September 2024.
Explaining the rationale behind the Russia crypto ban, Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, highlighted that,
“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 a monetary unit, which is why this decision was made.”
The State Duma is the lower house of the Federal Assembly of Russia. Reportedly, the proposed bill from the lower house is not a blanket crypto ban. Other lawmakers have also emphasized a few exceptions.
Russia crypto ban exceptions and divergent views
As per the proposed bill, the only exceptions to the ban will be digital currency miners, mining pools, and various test projects by the Central Bank.
Anton Gorelkin, a Russian lawmaker and current Deputy Chairman of the State Duma Committee on Information Policy, Information Technologies, and Communications, is one of the bill’s co-authors.
In a Telegram post over the weekend, Goreklin clarified the “ban” and stated,
“Of course, the circulation of cryptocurrencies will not be banned. What will be banned is the organization of turnover – that is, the creation of exchanges and exchangers outside the experimental legal regime.”
The Russian lawmaker further underscored geopolitical realities as a driving factor behind the move and highlighted,
“Giving businesses the green light in this direction means pushing them under Western sanctions: paradoxically, the ban on organizing the circulation of digital currencies is more of a protectionist measure.”
Additionally, the lawmaker noted that the “restriction may be lifted in the future.”
However, Artem Kiryanov, another State Duma member, called for a crypto regulation spelled out on a digital code for smooth enforcement.
Earlier in April, Elvira Nabiullina, Head of the Bank of Russia, overwhelmingly supported the use of cryptocurrency in international payments within the experimental legal regime.
It’s worth noting that Russia is amongst the top Bitcoin mining countries in the world. However, the reported miners’ exemption from the ban means its effects might not be adverse on the overall markets.
In conclusion, the proposed “ban,” as per Goreklin’s statement, won’t affect the circulation of cryptocurrencies in Russia but aims to “protect” local players from potential Western sanctions.
However, the ambitions to uphold the digital ruble and stifle any competition are worth watching.
