Tough Crypto Law Expected in Russia Despite Central Bank’s Softer Stance on Crypto Payments – Regulation Bitcoin News

The bill “On Digital Currency,” meant to comprehensively regulate crypto transactions in Russia, will be a “tough” law, according to the head of the State Duma Financial Market Committee. The legislation is yet to be finalized and will not be reviewed by lawmakers in the near future, Anatoly Aksakov revealed in an interview, despite Bank of Russia’s decision to drop its opposition to crypto payments, at least when they facilitate Russia’s foreign trade amid sanctions.

Intense Debate Continues to Delay the adoption of Russian law on cryptocurrencies

Discussions about the regulation of the Russian crypto market continue in the government and it’s not worth expecting that the draft law “On Digital Currency” will be filed with the State Duma soon, the Chairman of the Financial Market Committee at the lower house of Russian parliament, Anatoly Aksakov, told Parlamentskaya Gazeta this week.

Russian officials are currently debating over the bill’s third revision and the talks are heated, Aksakov unveiled. “I don’t think that the document will appear in the State Duma in the near future. The situation in the crypto market does not add optimism either — bitcoin has collapsed a lot against the backdrop of sanctions decisions,” the high-ranking deputy elaborated, despite earlier statements the legislation should be adopted during the house’s spring session.

According to the lawmaker, the U.S. State Department had begun to clamp down on cryptospace with the suspicion that it is being used for Russian sanctions evasion. “There are suspicions that the American intelligence services largely control this market, so there is no desire to fall under their invisible or visible eye when carrying out financial transactions,” Aksakov added.

Bank of Russia not opposed to international crypto payments

The bill “On Digital Currency,” which was initially submitted to the federal government by the Russian finance ministry in February, is likely to be adopted in its stricter version, Aksakov further unveiled. Aksakov explained how this would include the establishment of an centralized platform to facilitate settlements and exchanges with digital currencies.

Russian officials worked on legislation over the last few months, with many institutions supporting the regulation approach suggested by the Ministry of Finance. This regulatory approach favors strict government oversight of cryptocurrency-related activities like trading and mining while banning the use of bitcoin in payments.

With its call for a blanket ban on cryptocurrencies, the Central Bank of Russia has been isolated. However, the monetary authority recently softened its position a little, backing a proposal to employ digital coins for international settlements while maintaining that crypto assets bring risks for the country’s financial system.

Quoted by the Kommersant business daily, the CBR’s First Deputy Chairman Ksenia Yudaeva said during a press conference that the regulator does not oppose the use of cryptocurrencies “in international transactions and the international financial infrastructure.” A respective provision, allowing crypto payments in foreign trade, has been added to the Minfin’s draft law.

Do you expect Russia to adopt its new law “On Digital Currency” this year? Leave your comments below.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.