Russian Lawmakers Confirm ‘Crypto Ban’ Could Be Implemented by September

Russian ‘Crypto Ban’ – Latest Developments

A Russian “crypto ban’ could roll out as early as September 1, top lawmakers in the country have confirmed. Speaking to the media outlet NSN, the Chairman of the State Duma Committee on the Financial Market Anatoly Aksakov said lawmakers will vote on a “ban on organizing the circulation of cryptocurrencies” in the coming weeks.

Details of the Proposed Ban

Aksakov stated that the bill will stipulate that “only digital financial assets issued in Russian jurisdictions” will be exempted from the new law. These assets will include several Russian bank-issued blockchain-powered digital coins and the Central Bank’s digital ruble project.

Support for the Ban

The bill is unlikely to face any major opposition in the State Duma, providing it has the full support of the Central Bank and government ministries. The bank has previously called for a China-style “total” ban on crypto, a move strongly opposed by major ministry heads.

Potential Exemptions

Aksakov explained that exceptions to the ban will only be made for miners, mining pools, and “test projects” under the supervision of the Central Bank.

Concerns for Russian Crypto Users

Alarm bells are ringing for Russian crypto users as the bill could potentially force Russian banks to refuse crypto exchange-related transactions, impacting millions of users in the country.

Future Implications

The Deputy Chairman of the State Duma Committee on Information Policy Anton Gorelkin suggested that the bill would not “prohibit” the “circulation of cryptocurrencies in Russia,” but rather focus on cracking down on illegal crypto exchanges operating outside the Central Bank’s new regulatory regime.

Regulatory Oversight

It appears likely that the new regulations will be supervised by the Central Bank’s experimental legal regime (EPR) and could impact the sale of industrial crypto miners’ coins to overseas buyers.

Compliance Challenges

Rosfinmonitoring, the top Russian anti-money laundering regulator, has urged the government to expedite the rollout of crypto regulations following a compliance downgrade by the Financial Action Task Force (FATF).