Tough Crypto Law Expected in Russia Despite Central Bank’s Softer Stance on Crypto Payments – The Russian government is still debating how to regulate the crypto market, and it’s unlikely that the draft law “On Digital Currency” will be filed with the State Duma anytime soon, according to Anatoly Aksakov, the Chairman of the Financial Market Committee in the lower house of Russian parliament.
Officials in Russia are presently debating the bill’s third revision, and the discussions are tense, Aksakov revealed. “I don’t believe the document will appear in the State Duma in the future.”
Despite prior statements that the law will be passed during the house’s spring session, the situation in the crypto market does not inspire confidence. “Bitcoin has dropped a lot against the backdrop of sanctions decisions,” the high-ranking deputy elaborated.
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The lawmaker pointed out that the US State Department has begun to crack down on the crypto space, based on the assumption that bitcoin is being used to evade Russian sanctions.
“There are concerns that American intelligence agencies control a major portion of this market, therefore there is no desire to do business under their watchful eye, whether invisible or visible,” Aksakov added.
The bill “On Digital Currency,” which the Russian finance ministry first submitted to the federal government in February, is likely to be accepted in its stricter version, according to Aksakov. He went on to say that this includes the establishment of a centralized platform for digital currency exchange, settlements, and other operations.
In recent months, Russian officials have been working on legislation, with most institutions supporting the Ministry of Finance’s regulatory approach, which favors legalization of crypto-related activities such as trading and mining under strict government control while prohibiting the use of bitcoin and other cryptocurrencies in payments.
With its push for a blanket ban, including on the issuance and exchange of cryptocurrencies, the Central Bank of Russia (CBR) has found itself isolated. The central bank has recently changed its stance, supporting a proposal to use digital currency for international settlements whilst maintaining that crypto assets pose a risk to the country’s financial system.
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The CBR’s First Deputy Chairman, Ksenia Yudaeva, told the Kommersant business daily that the regulator does not oppose the use of cryptocurrencies “in international transactions as well as the international financial infrastructure” during a press conference. The Minfin’s draft law now includes a section that allows crypto payments in foreign trade.