Russia Reverses Stance on Crypto Exchange Ban Amid Ongoing Policy Debate
“Russia Reverses Ban on Crypto Exchanges” The Russian government is reportedly poised to reverse its position on banning crypto exchanges, deciding against halting the “circulation” of cryptocurrency within the country. This development follows statements from Anton Gorelkin, Deputy Chairman of the State Duma’s Committee on Information Policy.
In a Telegram post, Gorelkin, a co-author of a draft law on crypto mining, revealed that many lawmakers have expressed serious concerns about the proposal to shut down domestic crypto exchanges. This policy disagreement has contributed to a protracted deadlock between various ministries and the Central Bank over crypto mining and exchange regulations.
🚨 Russia May Legalize Industrial Crypto Mining by Week’s End
Recent media reports suggest that Russia could legalize industrial crypto mining by the end of the week. #CryptoNews #Russia
This ongoing impasse has left Russia’s burgeoning crypto mining and crypto sectors largely unregulated. Earlier this month, President Vladimir Putin urged lawmakers to resolve the deadlock and expedite crypto mining legislation. In response, lawmakers have committed to passing two crypto-related bills before the current parliamentary session ends on August 5.
The Central Bank had proposed a ban on crypto exchanges, aiming to restrict operations to a select group of platforms within a special sandbox designed for cross-border trade payments and sanctions evasion. However, Gorelkin suggested that lawmakers view this proposal as impractical. He noted that the Financial Markets Committee had successfully removed the clause banning the organization of cryptocurrency circulation, which had raised significant concerns among industry representatives.
Russia to Implement Crypto Ad Ban
Gorelkin also indicated that while the proposed ban on crypto-related advertisements in Russia will remain in place, a separate proposal to cap the electricity usage for home-based crypto miners is unlikely to pass. The Energy Committee of the State Duma is reportedly rejecting the idea of restricting electricity for private miners, and a proposed complete ban on individual mining did not advance past the committee stage.
Legislators are now expected to pass a law permitting companies to use cryptocurrency for international trade settlements. While the Central Bank aims to implement a government-approved sandbox for these transactions, Gorelkin suggested that further details about this sandbox will be withheld to protect sensitive information.
Both the mining bill and the sandbox bill have passed their initial readings in the Duma. Lawmakers face a tight schedule to meet their deadline, with both bills requiring additional readings and committee discussions. The Financial Markets Committee has indicated that the sandbox bill is ready for a second vote, with a vote expected on July 30.
Earlier statements from President Putin highlighted that crypto mining represents 1.5% of Russia’s total energy usage, and he proposed that regions should have the authority to impose local bans on crypto mining activities.
