There is a lot going on in Russia when it comes to the regulation of Bitcoin and other crypto assets. Probably because of the Western sanctions, the signs in Moscow are crypto-friendly. However, a new draft law shows that domestic crypto payments could be overkill after all.
On June 7, Anatoly Aksakov submitted one change proposal entered the State Duma for the already existing law “On Digital Financial Investments”. In it, the chairman of the Financial Markets Committee proposes an explicit ban on the use of cryptocurrencies – referred to by the law as “digital financial assets” – as a domestic means of payment:
The official monetary unit (currency) of the Russian Federation is the ruble. The present proposal also prohibits the introduction of other currency units in the Russian Federation, as well as the issuance of currency surrogates,
explains Aksakow in an attached letter of explanation. The previous legal situation de facto already ruled out the acceptance of cryptocurrencies as a means of payment. The proposed amendment anchors the ban explicitly in the text of the law.
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Law Defines “Electronic Platforms”
Aksakov’s proposed law is also interesting as it seeks to introduce the notion of an “electronic platform” into legislation for the first time. The loose term includes crypto exchanges and other financial and investment platforms that issue digital financial assets.
The proposed law would place these platforms under the supervision of the Central Bank of Russia. They would then all need approval from the Bank Rosii and would be listed on a registry maintained by the financial institution.
Russia’s crypto plans
Aksakow’s recent advance may surprise some Bitcoin enthusiasts. After all, he takes some of the wind out of the sails of the dream of Russia as the new crypto El Dorado. Just a few weeks ago, Deputy Trade and Industry Minister Denis Manturov loudly claimed Reuters finally that the acceptance of Bitcoin and Co. as a means of payment is only a matter of time.
Manturov’s prognosis may not come true, but Russia has been on crypto-friendly paths since the beginning of the brutal war of aggression against Ukraine. The country plans to move crypto mining out of the legal gray area and into legality. Another law is intended to define the legal framework for the use of Bitcoin and Co. It is currently being discussed by authorities.
The fact that Bitcoin does not become a domestic means of payment thus marks the outer limit of the Kremlin’s crypto acceptance. Because at least when it comes to processing payments abroad, both parts of the government and the crypto-skeptical central bank are in favor experiments with digital currencies ready.
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