Russia to ban cryptocurrencies as a move to protect the Ruble 

The Russian government bans cryptocurrencies, including Bitcoin, from its jurisdiction. The Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, said the ban will be imposed on all cryptocurrencies. The plan will impose a ban on organizing the circulation of cryptocurrencies and only legalize digital assets issued in Russian jurisdiction. 

In earlier developments, a group of the State Duma introduced a bill to the lower house on regulating mining activities, which suggested a ban on the organization and circulation of digital currencies in Russia. 

The document submitted by the State Duma, led by Chairman Aksakov, suggests exceptions will be made only to miners of digital currencies, mining pools, and test projects exclusively commissioned by the Central Bank. According to Anatoly Aksakov, the decision has already been passed; no changes are expected in the coming days. 

Russia’s state of cryptocurrencies

“We are talking about a ban on transactions with bitcoins and other cryptocurrencies. Digital financial assets issued in Russian jurisdiction, such as 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. However, only the Ruble fulfills the mission of a monetary unit, which is why this decision was made. From September 1, the ban will be introduced,” – Anatoly Aksakov.

The crypto market is generally experiencing regulation battles from all corners, and Russia’s latest regulation attempts will undoubtedly have a large impact on the crypto landscape. The sentiments from the team suggest that Bitcoin and other cryptocurrencies are just quasi-currencies that can easily be liquidated. Although motivated by the need to protect the Ruble, the move may have more impact on cross-border transactions. 

Russian officials have occasionally used cryptocurrencies in the past for crucial military purchases. Crypto is known to provide easy cross-border transactions with limited scrutiny from mainstream financial institutions, which are often inclined to take political sides in international politics. 

Crypto has become a huge part of Russia’s government dealings. In retrospect, the Finance Minister, Anton Siluanov, is championing a more lenient take on cryptocurrencies that will allow for both domestic and international transactions.

In spite of Anatoly Aksakov’s remarks on cryptocurrencies and the Russian government’s position, some government officials have different views on the matter, championing a more inclusive approach to crypto regulation. Elviria Nabiullina, the head of the Bank of Russia, has also expressed the need to test and experiment with crypto for international settlements. 

Sourced From NSN