The Russian government has announced a ban on cryptocurrencies, including Bitcoin, within its jurisdiction. Anatoly Aksakov, the Chairman of the State Duma Committee on the Financial Market, confirmed that the ban will apply to all cryptocurrencies. The plan aims to prohibit the organization of cryptocurrency circulation and only legalize digital assets issued within Russian jurisdiction.
Earlier this year, a group of State Duma members introduced a bill to regulate mining activities, which proposed banning the organization and circulation of digital currencies in Russia. The State Duma, led by Chairman Aksakov, submitted a document suggesting exceptions to this ban for miners, mining pools, and test projects commissioned by the Central Bank. Aksakov stated that the decision has been finalized and no further changes are expected.
Aksakov explained the rationale behind the ban, stating, “We are talking about a ban on transactions with bitcoins and other cryptocurrencies. However, digital financial assets issued within Russian jurisdiction, such as digital rubles, will be allowed. The ban is necessary because cryptocurrency is currently functioning as a quasi-currency replacing the ruble in the country. However, only the Ruble serves as the official monetary unit, which is why this decision was made. The ban will come into effect on September 1.”
This move by the Russian government is likely to have a significant impact on the cryptocurrency market, as the industry is already facing regulatory challenges worldwide. While the ban is motivated by the desire to protect the Ruble, it may also affect cross-border transactions, which are often facilitated by cryptocurrencies due to their ease of use and limited scrutiny from traditional financial institutions.
It is worth noting that Russian officials have previously utilized cryptocurrencies for important military purchases. Cryptocurrencies offer a convenient way to conduct cross-border transactions with less oversight from mainstream financial institutions, which are often influenced by political affiliations in international politics.
Despite Aksakov’s statements and the Russian government’s position on cryptocurrencies, some officials advocate for a more inclusive approach to crypto regulation. Elvira Nabiullina, the head of the Bank of Russia, has expressed the need to experiment with cryptocurrencies for international settlements.
Source: NSN
