Russia's New Bill: Proposes Banning Personal Cryptocurrency Transactions While Still Allowing Mining
TechFlow Selected TechFlow Selected
Russia's New Bill: Proposes Banning Personal Cryptocurrency Transactions While Still Allowing Mining
The bill aims to strengthen the ruble's control over cryptocurrency amid geopolitical tensions.
Navigating Web3 tides with focused insightsAuthor: TaxDAO
Key Points of the New Bill
-
Imposes strict restrictions on cryptocurrencies effective September 1, exempting miners and central bank projects
-
The bill aims to strengthen the ruble and control cryptocurrencies amid geopolitical tensions
-
The bill is in the proposal stage and remains controversial; Russia's finance minister advocates regulated use
1 Progress of the New Bill
Anatoly Aksakov, a member of Russia’s State Duma, has reintroduced a proposal to ban the circulation of private cryptocurrencies starting September 1. The proposed bill has not yet been passed by the lower house of parliament, but Aksakov stated that “the decision has already been made.”
2 Main Contents of the New Bill
The bill proposes strict restrictions on the general circulation of crypto assets such as Bitcoin in Russia beginning September 1, including the circulation of digital rubles. Organizing the circulation of digital currencies will be prohibited. For example, using Russia's information infrastructure to provide services for transferring cryptocurrencies from one owner to another will be disallowed. Advertising or otherwise offering cryptocurrencies to an unlimited number of people will also be prohibited. Only digital financial assets issued within its jurisdiction will be permitted. Exceptions will apply only to individuals listed in a special registry, such as miners and licensed Russian legal entities.
The bill excludes cryptocurrency mining and experimental projects related to the central bank from these restrictions, as they significantly contribute to Russia's tax revenues.
It also strengthens regulation over mining and cryptocurrency transactions. Russia’s Ministry of Digital Development, Communications and Mass Media (MinTsifry) will establish a registry of miners. Only after registering information about legal entities or individual entrepreneurs will they be authorized to conduct mining activities. The government will also set energy consumption limits; entities staying below these thresholds will not need to register. Regarding cryptocurrency transaction oversight, miners will be required to report mined cryptocurrencies to regulatory authorities (not yet specified), along with unique character sequences used to record transactions.
These measures aim to prevent unregulated transactions, but do not constitute a complete ban on cryptocurrency use. Artem Kiyarov, Deputy Chair of the State Duma Committee on Economic Policy, called for precise regulatory rules to balance innovation and risk control. Meanwhile, Finance Minister Anton Siluanov’s more moderate stance indicates internal disagreements within the government on how best to utilize cryptocurrencies, leaving room for future policy adjustments.
3 Impact of the New Bill on Russia’s Local Cryptocurrency Industry
3.1 Restricted Cryptocurrency Circulation Strengthens Ruble Sovereignty
The bill aims to restrict non-Russian cryptocurrency operations to reinforce the dominance of the ruble. It forms part of broader government efforts to control the cryptocurrency ecosystem amid escalating geopolitical tensions. This marks a significant hardening of Russia’s regulatory stance toward the crypto sector, aiming to further consolidate the ruble’s role as the cornerstone of the national economy by limiting foreign cryptocurrency activities.
3.2 Exemptions for Mining and Central Bank Projects Promote Domestic Fintech Development
Despite an overall tightening trend, Russia’s cryptocurrency policy is not entirely closed off. While restricting circulation, the government grants special status to cryptocurrency mining, recognizing it as a significant source of tax revenue. Additionally, pilot projects linked to the central bank will enjoy exemptions, reflecting Russia’s attempt to curb external crypto influences while actively exploring blockchain technology to advance domestic fintech development.
3.3 The New Bill Presents Both Challenges and Opportunities
For Russia’s cryptocurrency industry, this policy shift is undoubtedly a double-edged sword. On one hand, existing trading platforms and cross-border transactions face major challenges, potentially forcing some businesses to adjust their models or relocate to more favorable jurisdictions. On the other hand, it paves the way for domestic cryptocurrency innovation and the promotion of the digital ruble, creating new growth opportunities for compliant players within the industry.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
TaxDAO
