Key Takeaways
- Starting September 1, Russia will enforce restrictions on public cryptocurrency use, allowing only digital assets and rubles issued domestically;
- The new rules will exempt crypto mining and Central Bank-sponsored projects due to their significant contribution to Russia's tax revenue;
- Trading and ownership of crypto will remain possible.
Beginning September 1, Russia will implement restrictions on the public use of cryptocurrencies, including Bitcoin (BTC).
These rules will only allow the circulation of digital financial assets and digital rubles issued within the country.
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Anatoly Aksakov, the Chairman of the State Duma Committee on the Financial Market, is leading these regulatory efforts as part of Russia's strategy to manage its crypto ecosystem during escalating geopolitical tensions.
Aksakov emphasized:
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 should serve as the official currency, which is why this decision was made.
The legislation, however, will create exceptions for crypto mining and certain Central Bank-sponsored experimental projects. These are due to crypto mining's contribution to Russia's tax revenues, with miners generating an estimated $2.59 billion annually in liquidity that aids in foreign trade transactions.
Anton Gorelkin, another member of the State Duma, clarified that while the creation of new crypto exchanges might be restricted, trading and owning crypto will not be prohibited entirely.
Of course, the circulation of cryptocurrencies will not be prohibited. The organization of circulation is prohibited - that is, the creation of exchanges outside the zone of the experimental legal regime.
These regulatory changes have sparked debate among Russian officials. Artem Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy, has called for a clear digital codification of crypto regulation to ensure consistency in legal enforcement.
Meanwhile, Anton Siluanov, Russia's Finance Minister, has opposed bans on crypto, advocating instead for a regulatory framework that would permit their domestic and international use. He argued:
I am sure that the Central Bank and I will come to an agreement. This issue has been discussed for several years. We cannot prohibit the circulation of cryptocurrencies. Therefore, we need to regulate this channel. I am sure that we will find a solution.
In parallel, Russia continues to explore the potential of crypto for international payments.
Overall, these new cryptocurrency policies represent an effort to balance control over Russia's financial system while acknowledging the role digital currencies could play in the future of global finance.
