As per the confirmation of top lawmakers in the country, a crypto ban in Russia could roll out as early as September 1. As per the statement of Anatoly Aksakov, Chairman of the State Duma Committee, the lawmakers will vote for a crypto ban in Russia in the coming weeks.
“Digital financial assets issued in Russian jurisdiction, and 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.”
Since cryptocurrency mining greatly increases Russia’s tax income, the bill will provide exclusions for cryptocurrency miners and Central Bank-sponsored test programs inside an experimental legal framework. Crypto miners in Russia generate approximately $2.59 billion in liquidity for foreign trade settlements, according to Statista data.
Reasons Behind Crypto Ban –
It is believed that the legislation aims to limit the use of crypto in order to increase the dominance of Ruble by allowing the circulation of only digital financial assets and digital rubles issued within the country’s jurisdiction. These assets will comprise the Central Bank’s digital ruble project as well as several blockchain-powered digital coins issued by Russian banks.
Hence, strict regulations will be imposed on the circulation of cryptocurrencies like Bitcoin and the bill would specifically target the creation of crypto exchanges outside the regime.
Here’s what Anton Gorelkin had to say –
“Of course, the circulation of cryptocurrencies will not be banned. The creation of exchanges outside the zone of the experimental legal regime will fall under the ban.”
Is Crypto Banned In Russia As Of Now?
As per the lawmakers, the ban will be imposed by September 1. Even though there are no strong oppositions to oppose the bill, policy debates and discussions are taking place to the next level!
- To guarantee uniform judicial enforcement, Artem Kiryanov, the deputy chairman of the State Duma Committee on Economic Policy, emphasized the significance of precise, unambiguous regulations that are digitally recorded.
- On the other hand, Russia’s Finance Minister, Anton Siluanov, favors a more moderate approach that would permit the use of cryptocurrencies in both domestic and foreign transactions, possibly loosening the regulations outlined in the recently passed legislation.
- The Head of the Bank of Russia, Elvira Nabiullina, is in favor of the trial usage of cryptocurrencies in international settlements, suggesting a potential softening of the financial environment in some areas.
- China’s complete prohibition of cryptocurrencies and mining greatly impacted the global market. Because of the impending regulations, Russia’s cryptocurrency market—which is smaller than China’s—is unlikely to have an as significant worldwide impact.
Hence, the future is predictable and unpredictable at the same time!
So, we would just suggest you stay tuned with ReadingCrypto to find out what happens next exactly!
Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.
