Russian Legislation Proposes Partial Ban on Cryptocurrency Circulation
The Russian State Duma has received a new version of the bill regulating mining. Among other provisions, it includes a ban on the organization of cryptocurrency circulation, except for experimental regimes by the Central Bank and the sale of coins by miners, reports Interfax.
The bill defines “organization of circulation” as providing services that result in the transfer of digital currency from one holder to another. In other words, Russia aims to prohibit the creation of exchanges and exchangers outside the scope of the ELR.
Russia will not ban cryptocurrency circulation. This was announced on his Telegram channel by Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy, Information Technology and Communications.
“Of course, cryptocurrency circulation will not be banned. The ban applies to the organization of circulation: the creation of exchanges and exchangers outside the experimental legal regime,” he explained.
According to Gorelkin, some believe that the issue of establishing a legal Russian cryptocurrency infrastructure “hinges on geopolitical realities.”
“Giving business the green light in this direction means pushing it under Western sanctions. Paradoxically, the ban on organizing digital currency circulation is more of a protectionist measure,” he noted.
Gorelkin suggested that this restriction might be lifted in the future. He emphasized that no one is prohibited from using foreign cryptocurrency exchanges and exchangers.
Miners and pools, for whom an exception is made, must sell the mined cryptocurrency without using Russian infrastructure.
Additionally, advertising digital currencies and organizing their circulation is prohibited.
Mining can be conducted by Russian legal entities and individual entrepreneurs included in the relevant register. Individuals will be allowed to mine cryptocurrencies without being included in the register, provided they adhere to government-established energy consumption limits.
The bill requires miners to report mined cryptocurrencies to the tax authorities, specifying the address of accrual, and grants the government the right to prohibit mining in certain regions.
Back in July 2023, the Ministry of Finance advocated for a ban on organizing cryptocurrency circulation, except for stablecoins and the sale of coins by miners. At that time, the FSB and the Investigative Committee opposed the initiative, arguing that these changes effectively introduce a ban on the organization of digital currency circulation as a whole, which is not supported by “specific arguments.”
Currently, transactions for the purchase and sale, circulation, and issuance of cryptocurrencies are permitted in Russia. However, using such assets as a means of payment and advertising this possibility is not allowed.
The previous version of the bill regulating mining was registered in the State Duma in mid-November 2022.
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