By Gabriel Joyce
Russia is poised to impose a ban on cryptocurrency exchanges operating within its borders as part of a sweeping regulatory overhaul. The move comes as the Russian Duma advances a bill aimed at regulating mining activities, with statements from Financial Market Chairman Anatoly Aksakov indicating that digital financial assets like the digital ruble will still be permitted to circulate.
Russian Duma Initiates Ban on Internal Organization of Cryptocurrency Turnover
The State Duma of Russia is gearing up to implement a ban on the internal organization of cryptocurrency exchanges within the country. Anatoly Aksakov, Chairman of the Russian Duma for the Financial Market, revealed that the ban is set to take effect from September 1, as part of a broader bill aimed at regulating cryptocurrency mining activities in Russia.
Introduced by a group of deputies led by Aksakov, the bill outlines certain exceptions that will be granted to mining activities and pools, allowing them to continue operating within Russian territory despite the impending ban on cryptocurrency exchanges.
Aksakov emphasized that the bill also includes provisions to facilitate the circulation of digital financial assets issued by Russia. Specifically, digital rubles will be permitted to freely circulate across national exchanges, indicating a strategic shift towards embracing domestically issued digital assets while clamping down on the organization of cryptocurrency turnover within Russia’s borders.
Russian Duma Initiates Ban on Internal Organization of Cryptocurrency Turnover
The State Duma of Russia is gearing up to implement a ban on the internal organization of cryptocurrency exchanges within the country. Anatoly Aksakov, Chairman of the Russian Duma for the Financial Market, revealed that the ban is set to take effect from September 1, as part of a broader bill aimed at regulating cryptocurrency mining activities in Russia.
Introduced by a group of deputies led by Aksakov, the bill outlines certain exceptions that will be granted to mining activities and pools, allowing them to continue operating within Russian territory despite the impending ban on cryptocurrency exchanges.
Aksakov emphasized that the bill also includes provisions to facilitate the circulation of digital financial assets issued by Russia. Specifically, digital rubles will be permitted to freely circulate across national exchanges, indicating a strategic shift towards embracing domestically issued digital assets while clamping down on the organization of cryptocurrency turnover within Russia’s borders.
Ban Aimed at Preserving Russian Ruble’s Monetary Role
Anatoly Aksakov underscored the rationale behind the ban on cryptocurrency exchanges, highlighting the competitive threat posed by these assets to the Russian ruble. He emphasized that while cryptocurrencies may seek to replace traditional currencies, only the Russian ruble fulfills the essential functions of a monetary unit, hence the decision to enact the ban.
Aksakov further elaborated on the potential role of digital financial assets in Russia’s economic strategy, distinguishing them from cryptocurrencies. He expressed optimism that digital financial assets, including the digital ruble, could potentially open up new avenues for Russia in global financial markets, particularly amid economic sanctions. Aksakov hinted at the possibility of these assets becoming a significant channel for international transactions, offering a potential avenue for circumventing fiat currencies in certain financial transactions.
Clarification on Cryptocurrency Circulation and Regulatory Exemptions
Responding to what he deemed “sensational headlines” suggesting a total ban on cryptocurrency circulation in Russia, Anton Gorelkin, a co-sponsor of the bill, provided clarification. He emphasized that while the bill prohibits the organization of cryptocurrency circulation, the actual circulation of cryptocurrencies will not be prohibited. Specifically, the creation of exchanges and exchangers outside the designated legal framework is what will be restricted.
Bank of Russia Governor Elvira Nabiullina further addressed the issue, specifying that the use of cryptocurrency for international payments would require support from an experimental regulatory framework. Anatoly Aksakov added that projects initiated by the Bank of Russia would be exempted from the law’s provisions, indicating a nuanced approach to regulating cryptocurrency activities in the country.
