The Russian government has made the decision to ban cryptocurrencies, including Bitcoin, within its jurisdiction. Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, confirmed the ban and stated that it would apply to all cryptocurrencies. The plan is to prohibit the organization of cryptocurrency circulation, while only allowing digital assets issued within Russian jurisdiction to be legalized.
Previously, a group within the State Duma introduced a bill to regulate mining activities, which proposed a ban on the organization and circulation of digital currencies in Russia. The document, led by Chairman Aksakov, includes exceptions for digital currency miners, mining pools, and test projects authorized by the Central Bank. Aksakov has stated that the decision has already been approved and no further changes are expected.
Aksakov explained the reasoning behind the ban, stating, “We are talking about a ban on transactions with bitcoins and other cryptocurrencies. Digital financial assets issued in Russian jurisdiction, such as 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. However, only the Ruble fulfills the mission of a monetary unit, which is why this decision was made. From September 1, the ban will be introduced.”
The regulation of cryptocurrencies has been a topic of debate worldwide, and Russia’s decision is expected to have a significant impact on the crypto market. While the ban is motivated by the desire to protect the Ruble, it may also affect cross-border transactions, as cryptocurrencies have been used in the past for military purchases due to their ability to facilitate easy cross-border transactions with limited scrutiny.
Despite Aksakov’s remarks and the government’s stance on cryptocurrencies, there are some officials who advocate for a more inclusive approach to crypto regulation. Elvira Nabiullina, the head of the Bank of Russia, has expressed the need to test and experiment with cryptocurrencies for international settlements. Anton Siluanov, the Finance Minister, is also supportive of a more lenient approach that allows for domestic and international transactions involving cryptocurrencies.
In conclusion, Russia has decided to ban cryptocurrencies, with the exception of digital assets issued within its jurisdiction. This move is expected to have a significant impact on the crypto landscape and may affect cross-border transactions. While there are differing views within the government on crypto regulation, the ban is set to be implemented from September 1.
