Russia to Enforce Strict Ban on General Circulation of Crypto Assets: Impact on Global Crypto Ecosystem
Russia to Implement Strict Ban on Crypto Assets, Allowing Only Digital Rubles
In a move to assert control over the crypto ecosystem, Russia is set to enforce a strict ban on the general circulation of crypto assets such as Bitcoin. The ban, spearheaded by Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, will only allow digital financial assets issued within Russian jurisdiction.
Aksakov emphasized the need for this legislation to reinforce the dominance of the Russian ruble, stating, “Digital financial assets issued in Russian jurisdiction, and digital rubles will be allowed. The need for a ban is due to the fact that today cryptocurrency – is a quasi-currency that replaces the ruble in the country. But only the Russian ruble fulfills the mission of the monetary unit, so this decision has been made.”
While the bill will make exceptions for crypto miners and Central Bank-sponsored test projects within an experimental legal framework, there is a heated internal debate among Russian policymakers. Artem Kiryanov, Deputy Chairman of the State Duma Committee on Economic Policy, stressed the importance of precise regulations for cryptocurrency.
On the other hand, Russia’s Finance Minister, Anton Siluanov, and Head of the Bank of Russia, Elvira Nabiullina, have advocated for a more moderate approach, supporting the experimental use of cryptocurrencies in international settlements.
Recent reports have highlighted the use of cryptocurrencies by Russian entities to procure critical components for military technology, bypassing traditional banking channels. This move has raised concerns about the potential misuse of cryptocurrencies in circumventing sanctions.
As Russia moves forward with this ban on crypto assets, the global crypto community will be closely watching the impact of this decision on the broader cryptocurrency market. Stay tuned for more updates on this developing story.
