Market

Russia will enforce strict crypto rules starting on September 1

Array
Russia will severely ban crypto on September 1 A view shows the state flag of Russia before a meeting of Russian President Vladimir Putin with French President Emmanuel Macron in St. Petersburg, Russia May 24, 2018. REUTERS/Grigory Dukor

Russia will severely ban crypto on September 1, but miners and Central Bank projects will be exempt.

In the face of global tensions, State Duma Financial Market Committee member Anatoly Aksakov leads this endeavor to support the ruble and govern the crypto industry.

The new rule would restrict crypto usage to Russian-issued coins like digital rubles. Since cryptocurrencies are replacing the ruble in several economic sectors, Aksakov said this action is necessary to maintain its status as the major currency.

The law exempts crypto mining and Central Bank-related experimental initiatives since they contribute to Russia’s tax revenue, which provides $2.59 billion in foreign trade liquidity.

State Duma member Anton Gorelkin said that although crypto exchanges and transaction platforms outside regulated zones would be outlawed, bitcoin circulation will continue.

This prevents uncontrolled transactions but does not outlaw digital currency. Russian Finance Minister Anton Siluanov and Bank of Russia Governor Elvira Nabiullina advocate mild crypto regulation.

They support restricted usage in local and foreign markets, suggesting a consensus following lengthy deliberations.

To circumvent sanctions, Russian businesses have utilized cryptocurrencies like USDT to acquire military technology components.

Digital currency were used to buy drone components for Ukrainian military activities, evading international inspection.

Tags

Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.