Russia Reverses Ban on Cryptocurrency Circulation

On July 25, the Russian State Duma’s Financial Market Committee introduced amendments to the second reading of the mining bill, removing the ban on the organization of cryptocurrency circulation. This was announced by Deputy Anton Gorelkin.

This provision had previously excluded the possibility of creating exchanges and exchangers outside the scope of experimental legal regimes (ELR). According to Gorelkin, in its current form, it had raised significant concerns among industry representatives.

Another contentious point—the ban on advertising digital currencies—remains, but it will be addressed in corresponding amendments to the Federal Law “On Advertising.”

The State Duma’s Energy Committee expressed concerns about “black” mining and the inefficacy of combating it through electricity consumption limits outlined in the bill. However, the proposal to completely ban individuals from mining cryptocurrencies did not pass.

“Regulatory and law enforcement agencies can effectively identify ‘black’ miners based on data exceeding consumption limits, but they need to be provided with the necessary tools and accountability must be defined,” added Gorelkin.

Simultaneously, the meeting recommended the second reading of a companion bill on ELR, which legalizes the use of cryptocurrencies for cross-border settlements.

Earlier, on July 24, the Russian State Duma passed the first reading of bills on the regulation of mining and ELR.

On July 23, a separate law required miners in Russia to comply with AML standards.