Tough Crypto Law Expected in Russia Despite Central Bank’s Softer Stance on Crypto Payments

A bill “On Digital Currency” intended to comprehensively regulate crypto transactions in Russia will be a “tough” law, according to the head of the State Duma’s Financial Market Committee. Anatoly Aksakov clarified in an interview that the bill is not yet finalized and will not be considered by lawmakers in the near future, despite the Bank of Russia’s decision to drop its opposition to crypto payments, at least if they promote Russian foreign trade amid sanctions.

The adoption of Russian legislation on cryptocurrencies has been delayed

by the ongoing debate over the rules.

Discussions on regulating Russia’s crypto market continue within the government, and it is not worth expecting a draft law “on digital currencies” to be submitted to the State Duma anytime soon, Anatoly Aksakov, chairman of the Financial Markets Committee in the lower house of the Russian parliament, told,. Parlamentskaya Gazeta reported this week.

Russian authorities are currently debating over the third amendment to the bill, and talks are heating up, Aksakov revealed.” I do not expect the document to appear before the State Duma in the near future. The situation on the crypto market is also not optimistic. Bitcoin has crashed significantly against the backdrop of the sanctions decision,” the high-ranking deputy elaborated, despite his earlier statement that the bill should be adopted during the spring session of the Chamber of Deputies.

The congressman noted that the U.S. State Department has begun clamping down on the crypto space with the presumption that bitcoin is being used to circumvent sanctions against Russia. Aksakov added, “Because of the suspicion that the U.S. intelligence community largely controls this market, I would not want to fall under their invisible or visible eye when conducting financial transactions.”

Bank of Russia not opposed to international crypto payments

Aksakov further revealed that the initial bill “On Digital Currency,” which the Russian Ministry of Finance submitted to the federal government in February, is likely to be adopted in a more stringent version. It would include the establishment of a centralized platform for the exchange of digital currencies, payments, and other operations, he elaborated.

Russian authorities have been working on the bill for the past several months. Most agencies support legalization under strict government control of crypto-related activities such as trading and mining, and support the regulatory approach proposed by the Ministry of Finance that would ban the use of Bitcoin and other cryptocurrencies in payments.

The Central Bank of Russia (CBR) has found itself in isolation as it pushes for a blanket ban that would include the issuance and exchange of cryptocurrencies. However, the monetary authority recently softened its position slightly and supported a proposal to adopt digital coins for international payments, while maintaining that crypto assets pose a risk to the country’s financial system.

Quoted by Kommersant business daily, CBR First Vice Chair Ksenia Yudaeva said at a press conference that the regulator is not opposed to the use of cryptocurrencies “in international trade and international financial infrastructure.” The respective provisions were added to Minfin’s draft law, permitting crypto payments in foreign trade.

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