Rumors are currently circulating on social networks about an impending ban on Bitcoin in Russia. The wave of speculation was sparked by an article on the news website NSN about a statement by a Russian MP who declared that the circulation of Bitcoin and other cryptocurrencies would be banned from September 1. While this news is being hotly debated on social media such as 𝕏, there are also denials that provide a little more clarity.
Confusion about bans
The NSN report highlighted that a group of State Duma deputies, led by the Chairman of the Financial Markets Committee, Anatoly Aksakov, has introduced a bill to regulate mining activities in the lower house of parliament. The draft provides for far-reaching changes: It is (supposedly) about a ban on digital currencies in Russia, with exceptions only covering miners of digital currencies, mining pools and central bank test projects operating under an experimental regulatory framework. "The decision has been made," emphasized Aksakov, according to the article.
It concerns a ban on transactions with bitcoins and other cryptocurrencies. Digital financial assets issued in the Russian jurisdiction, including digital roubles, will be permitted. The need for a ban arises from the fact that cryptocurrencies are now virtually a currency that replaces the rouble in the territory of the country. However, only the Russian rouble fulfills the function of a monetary unit, which is why this decision was made. The ban will come into force on September 1.
Anatoly Aksakov, Chairman of the Financial Markets Committee
Regulation instead of bans
While some concerned voices jumped on the headlines and feared a complete ban in social networks and forums, official circles have already provided clarification. One of Russia's lawmakers has made it clear that the country is not planning to ban the circulation of cryptocurrencies altogether.
Anton Gorelkin, the deputy chairman of the State Duma Committee on Information Policy, Information Technologies and Communications, made it clear that the circulation (i.e. trading and possession) of cryptocurrencies would not be banned. Rather, the establishment of crypto exchanges and over-the-counter (OTC) services outside of a regulatory framework will be prohibited. This clarification thus separates the trading and holding of cryptocurrencies from the "organization of their circulation" by exchanges and other service providers, which do not fall under the experimental framework provided by the Russian government. In a public Telegram post, Gorelkin criticized the numerous news sites for producing sensationalist headlines instead of checking the facts.
It is astonishing that even some reputable publications have written that "MPs want to ban the circulation of cryptocurrencies in Russia". Why then should the same bill introduce mechanisms to identify criminal cryptocurrency transactions if all of them would be considered illegal? The authors of lurid headlines are not concerned with this question.
Of course, the circulation of cryptocurrencies will not be banned. Only the organization of circulation will be prohibited, that is, the creation of exchanges and exchange offices outside the scope of the experimental regulatory framework.
Anton Gorelkin, deputy of the State Duma
Protective measure or restriction?
He went on to explain that this is actually a measure to protect businesses rather than a crackdown on the crypto sector.
This is a condition that some players insist on, and they point out that the issue of building a legal Russian crypto infrastructure today runs up against geopolitical realities. Allowing a business to advance in this direction would mean exposing it to Western sanctions: a paradox, but the ban on organizing the circulation of digital currencies is more of a protectionist measure here.
I do not rule out the possibility that this restriction could be lifted in the future. As before, the use of foreign crypto exchanges and exchange services will remain permitted.
Anton Gorelkin, Member of the State Duma
The tension between the protection of national interests and the freedom of digital trade is at the heart of the current debate on the regulation of cryptocurrencies in Russia. Anton Gorelkin's statement shows that it is less about a ban on Bitcoin and Co. in general, but rather about a controlled authorization of their circulation. By targeting crypto exchanges and OTC services, Russia is not positioning itself as "anti-crypto", as some news portals have headlined. Rather the opposite is the case.
