In a move that has caught the attention of cryptocurrency enthusiasts worldwide, Russia aims to significantly limit the operation and circulation of cryptocurrencies, effective from September 2024. The regulations, primarily aimed towards restoring the dominance of the Russian ruble in the local market, will not be a blanket ban. Certain exceptions have been laid out by the State Duma, the lower house of Russia’s Federal Assembly, according to its Chairman of the Financial Market Committee, Anatoly Aksakov.
Per the proposed guidelines, digital currency miners, mining pools and various test projects initiated by the Central Bank will be exempted from the ban. Other exceptions, as explained by Russian lawmaker and co-author of the new bill, Anton Gorelkin, include the organization of exchanges and exchangers outside the experimental legal framework.
While the new regulations may seem restrictive, Gorelkin stated in a recent Telegram post that they are actually designed with a protective mindset. Drawing attention to potential Western sanctions, he clarified that businesses would receive a “green light” only after comprehensive risk assessment. Gorelkin also expressed that these restrictions could be lifted in the future.
Another State Duma member, Artem Kiryanov, proposed that the new crypto regulations be code-based, to facilitate efficient enforcement. Elvira Nabiullina, the Head of the Bank of Russia, expressed her favorability towards the bill in April, advocating for using cryptocurrencies for international payments under the legal experimental regime.
Despite the incoming regulations, Russia’s position as one of the most significant Bitcoin mining countries worldwide is expected to remain unchanged. The protections extended to miners will moderate the expected impacts on the market. It seems, then, that these changes focus more on promoting the digital ruble rather than completely sidelining cryptocurrencies, marking a critical juncture in Russia’s financial trajectory.