The Russian government seems to be reversing its decision on implementing a crypto exchange ban, as reported by lawmaker Anton Gorelkin. Many lawmakers are now expressing serious concerns about plans to shut down domestic crypto exchanges, citing a longstanding impasse between ministries and the Central Bank on crypto-related policies. President Vladimir Putin recently urged lawmakers to fast-track legislation on crypto mining, prompting the State Duma to consider passing two crypto-related bills by August 5. The Central Bank’s proposal for a crypto exchange ban, aimed at a select group of trading platforms for cross-border trade payments, may be considered unworkable by lawmakers.
Gorelkin clarified that the Committee on the Financial Markets successfully removed the clause banning the organization of cryptocurrency circulation, which had raised concerns among industry representatives. While a ban on the advertisement of crypto-related products and services is expected to be upheld in Russia, there is mixed news for home-based crypto miners. The State Duma’s Energy Committee may reject a proposal to cap private individuals’ electricity usage for mining rigs, as well as the idea of completely banning individuals from crypto mining. Instead, it is likely that a law permitting companies to use crypto as a settlement tool in international trade will be passed, although details about the proposed government-approved sandbox remain undisclosed.
Lawmakers face a tight deadline to pass both the mining bill and the sandbox bill, with additional readings and committee discussions required for each. The Financial Markets Committee has declared the sandbox bill ready for a second vote, including provisions for a regulator overseeing settlements in digital currencies. Media reports suggest that a vote on the bill is scheduled for July 30. President Putin has acknowledged that crypto mining constitutes a portion of Russia’s energy consumption and proposed granting regional authorities the authority to impose local bans on mining activities.
With the potential legalization of industrial crypto mining on the horizon, Russia may soon see more regulatory clarity in its crypto sector. If the proposed bills are passed, it could signal a shift towards a more accommodating stance on cryptocurrencies within the country. By reconsidering the intended ban on crypto exchanges and exploring options for integrating crypto into international trade, Russian lawmakers are navigating a complex landscape of economic and political considerations. As global interest in cryptocurrencies continues to grow, Russia’s evolving approach to crypto regulation could have significant implications for both domestic and international stakeholders involved in the burgeoning industry.
