New bill in Russia wants to ban crypto transactions

Last Updated: 9 June 2022

A new bill in Russia could hinder the progress of crypto adoption. This bill proposes to ban crypto payments. It was introduced in the Russian parliament yesterday.

No other coins than the rouble

This law would oblige managers of ‘digital financial assets’ (read: crypto) to stop crypto transactions. This bill came from Anatoliy Aksakov, the head of the Financial Markets Committee of the Lower House of the Russian Parliament.

“The ruble is the official currency (currency) of the Russian Federation. The aforementioned article prohibits the introduction of other currencies or monetary surrogates on the territory of the Russian Federation,” the bill reads.

The draft law refers to a law that already exists. Namely, a law that does not explicitly prohibit the use of crypto as a means of payment. On the other hand, crypto transactions are still not officially considered legal in the country.

Do they want it or not?

Just before the war, Russia hesitated for a long time about making crypto legal (and illegal). There were many mixed signals coming from the Ministry of Finance and the Russian Central Bank. Both parties tried to present a proposal on crypto.

The ministry’s bill suggested giving crypto investors freedom. And the central bank proposed to declare crypto – in any form – illegal and fine anyone who uses it.

Debate gets bigger

This duel is gaining traction on both sides as the head of the Financial Markets Commission gets involved. Last month, Denis Manturov, the Minister of Industry and Trade of the Russian Federation, said that Russia will sooner or later legalise crypto as a means of payment.

Even Putin did not escape the crypto discussion, but has learned to stay far away from it. The president intervened in the discussion on crypto, which was discussed in a video call with members of the government. But he did not want to take sides and left it to the government and the central bank.

So at the moment, the Financial Markets Committee and Industry and Trade are contradicting each other again. So do the Finance Ministry and the central bank. It is a mess, but despite the big discussions within the country, it means that crypto is much discussed in the most important circles of Russia.

  • Florian Feidenfelder

    Florian Feidenfelder is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.

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