Exceptions will apply to stablecoins and the sale of cryptocurrency by Russian miners

Russia’s Ministry of Finance proposes to ban the organization of cryptocurrency circulation

04.07.2023 - 14:50


2 min

What’s new? The Ministry of Finance of the Russian Federation proposed to impose a ban on the organization of cryptocurrency circulation in the country, making exceptions for stablecoins and cases of sale of digital assets by Russian miners. According to Frank Media, relevant amendments to the draft law on mining have already been prepared by the department’s specialists.

News on the Frank Media website

What else is known? Currently, Russia has a ban on the use of cryptocurrency as a payment instrument, as well as the advertising of crypto payments. According to media sources, the Ministry of Finance plans to introduce provisions into the draft law on mining, which contain a ban on “the organization of the circulation of digital currency, except for the organization of the circulation of digital currency in terms of mining (including participation in the mining pool).” It is assumed that the ban will also not affect stablecoins.

The regulator understands the term “organization of circulation” as the provision of a service that helps to perform civil transactions or transactions for the transfer of cryptocurrency from one holder to another using the Russian information infrastructure facilities (virtual and real crypto exchangers and crypto ATMs).

In this, two law enforcement agencies opposed these amendments. According to the FSB, the proposal of the Ministry of Finance does not disclose all the specifics of the circulation organization process. And the Investigative Committee believes that there may be confusion in the concepts between the “ban on the organization of circulation” and the “ban on circulation,” which, in turn, will lead to legal uncertainty and increase the level of crime and fraud.

Earlier, Rosfinmonitoring called the condition for recognizing transactions with cryptocurrencies money laundering. The department explained that criminal liability will occur if the funds are obtained by criminal means.

In late June, Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, announced the legalization and “serious control” of cryptocurrencies in the Russian Federation. According to the official, owners of this type of asset are waiting for the opportunity to work in a legal field.

According to TripleA estimates as of the end of June, cryptocurrencies in Russia are owned by 5,8% of the population. The country is in 11th place in the global ranking.


Michael Golikov Michael Golikov

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