Russia Expected to Introduce Tough Crypto Law

The head of the Financial Market Committee of the lower house of Russian Parliament, the State Duma, said that the legislation designed for regulating crypto transactions in the country is going to be a tough one. According to Anatoly Aksakov, the bill known as ‘On Digital Currency’ has not been finalized as yet and lawmakers will not be able to review it any time soon. The law is expected to be a tough one, despite the fact that the Russian central bank has finally softened its stance where crypto payments are concerned. This change has occurred because digital currencies are facilitating foreign trade for now, as the country is under is facing Western sanctions.

The Russian government is still having discussions about regulation of the crypto space and it will take them time to file the draft law. As of now, the third revision of the bill is under discussion and the talks have become quite heated. According to Aksakov, he does not believe that the law will be finalized any time soon and the condition of the crypto space is also not very encouraging. The high-ranking official said that due to the sanctions decisions, Bitcoin has experienced a significant drop in its value.

Statements had been made earlier about adopting the new crypto law in the spring session of the parliament. The lawmaker further added that the State Department in the US is also bearing down on the crypto market, as they presume that Russia is using bitcoin in order to evade the sanctions imposed against it. Aksakov also said that rumors indicated that the US intelligence services are controlling the crypto space and they have no intention of falling under their eye when making their financial transactions. The Russian finance ministry had submitted the crypto bill ‘On Digital Currency’ back in February to the federal government.

Aksakov elaborated that it was likely that a stricter version of the bill would come into effect. He said that this would include setting up a centralized platform that would be used for making settlements and exchanges and carrying out other operations relating to these currencies. In the last few months, Russian lawmakers have been working on the bill. Most of the government institutions are in favor of the regulatory approach recommended by the Ministry of Finance. They have suggested that the use of cryptocurrencies, such as bitcoin, be prohibited for making payments.

The Ministry of Finance is in favor of legalizing crypto-related activities under the government’s supervision, which include mining and trading. In contrast, the Central Bank of Russia (CBR) was in favor of imposing a blanket ban on all-things cryptocurrency but had not received any support for it. Now, it seems to have adjusted its stance a bit and is in favor of using crypto for making international settlements. But, it still reiterates that digital currencies are dangerous for the financial system of the country. This means that crypto will be used for foreign trade purposes, as sanctions have limited Russian activities.