Russia will pass a law banning the free circulation of cryptocurrencies
Date: 2024-07-15 Author: Gabriel Deangelo Categories: IN WORLD
On July 12, the State Duma Committee on the Financial Market approved the final version of the draft law, which significantly limits the circulation of cryptocurrencies in Russia. The first reading in the State Duma is scheduled for July 23.
If the bill becomes law, cryptocurrency exchanges and exchangers will be required to obtain special permission from an authorized government agency. Only companies and individual entrepreneurs included in the special government register of “Mining Infrastructure Operators” will be able to trade cryptocurrency. Any advertising of cryptocurrency trading will also be prohibited.
Mining and new rules
Private individuals will be allowed to engage in mining, but subject to restrictions on electricity consumption that will be set by the government. In addition, the government will be able to prohibit mining in certain regions of the Federation. All miners will be required to report all their operations to Rosfinmonitoring.
The State Duma website does not contain the final version of the bill, which will be provided to deputies before the vote. A brief retelling of the bill dated July 12 states that cryptocurrency will not be able to be sold or exchanged on foreign platforms, whereas the previous text spoke of a ban only on Russian sites.
Expert opinions
Ivan Tikhonov, founder of Bits.media, believes that prohibitive laws will not affect the existence and operation of cryptocurrencies in Russia, but will negatively affect the domestic crypto industry. It will be difficult for businesses to operate legally, pay taxes and create jobs, which will lead to the expansion of the black market and an increase in the outflow of specialists abroad.
“By adopting this bill, we will actually implement Western sanctions prohibiting the participation of Russians in crypto projects,” said Ivan Tikhonov. He also noted that after the adoption of the law there will be no relief for miners, and the situation with mining will turn into a simple sale of electricity abroad.
Possible consequences
Experts warn of possible negative consequences of the new law. Bans could lead to the development of a black market for cryptocurrencies and the departure of qualified specialists abroad, where they can receive high wages. This will leave Russia behind in technology and lead to the purchase of technology from foreign competitors.
“Banning is useless and will only make the situation worse,” says Tikhonov. He also calls for attention to possible corruption schemes among those who support this bill.
The new bill banning the free circulation of cryptocurrencies in Russia raises many questions and concerns. Experts warn of negative consequences for the country's economy and technological development, as well as possible corruption motives. It is important to carefully consider all aspects before making such important decisions to avoid irreversible consequences for the crypto industry and the economy as a whole.
