Russia Reportedly Set to Ban Cryptocurrency Circulation from September 1, Allowing Only Domestic Digital Assets

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As a long-term crypto investor with experience in the Russian financial market, I find Anatoly Aksakov’s stance on cryptocurrencies both intriguing and concerning. His extensive background in politics and finance makes him an influential figure in shaping Russia’s regulatory landscape for digital assets.

Beginning September 1, Russia is poised to prohibit the organization of cryptocurrency circulation, Anatoly Aksakov, head of the State Duma Committee on Financial Market, announced to local news agency National News Service (NSN). Under this new regulation, only digitally issued financial assets originating within Russian borders will be permitted.

Anatoly Gennadyevich Aksakov is a notable figure in Russian politics and finance, holding significant roles within the Russian Federation’s legislative body, the State Duma of the Federal Assembly. He serves as its Deputy and assumes crucial responsibilities: he chairs the Committee on Financial Market, and outside the State Duma, he also heads the Association of Banks of Russia as its Chairman. This dual position grants him substantial influence in both the Russian parliament and the financial sector.

He plays a significant role in economic matters within the Chuvash Republic as the Chairman of its Supreme Economic Council. Additionally, he is an active member of the “Just Russia – Patriots – For Truth” political party and holds positions on several high-level boards: the National Financial Board of the Bank of Russia and the Interregional Banking Council under the Federation Council.

His extensive knowledge and experience are validated by his appointments to prominent positions, such as being a member of the Advisory Council for the National Payment System’s development under the Bank of Russia’s Governor, an expert on the Financial Literacy Council under the Ministry of Finance, and a board member of the Russian Union of Industrialists and Entrepreneurs (RSPP). In 2022, the UK government imposed sanctions against him due to his involvement in the Russo-Ukrainian conflict.

Based on the NSN report, a group of Russian State Duma deputies, headed by Aksakov, have presented a new bill to parliament aiming to control mining operations and prohibit the establishment of digital currency circulation in Russia. The draft includes permits for digital currency miners, mining pools, and experimental projects under the Central Bank’s regulatory framework.

Aksakov affirmed that the prohibition on cryptocurrency trading would take effect starting September 1st. He elaborated, “The focus is on forbidding deals involving bitcoins and other cryptocurrencies. However, digital currencies issued within Russian territory, such as digital rubles, will remain permissible. The rationale behind the ban lies in the current role of cryptocurrency as a substitute currency undermining the ruble’s position as the country’s legal tender. Since only the ruble carries out the function of a monetary unit, this measure was deemed necessary.”

— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) April 29, 2024

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2024-04-29 15:42