Crypto Exchange Ban Too Serious to Ignore?

In a recent Telegram announcement, Gorelkin, a co-author of the draft law on crypto mining, revealed significant concerns among lawmakers regarding the proposal to shut down domestic crypto exchanges.

For years, ministries and the Central Bank have been at odds over policies related to crypto mining and exchanges, resulting in a prolonged deadlock. Consequently, the nation’s burgeoning crypto mining industry and expanding crypto sectors remain largely unregulated.

Earlier this month, President Vladimir Putin urged lawmakers to resolve this impasse and expedite crypto mining legislation. In response, legislators committed to passing two crypto-related bills before the current parliamentary session concludes on August 5.

Central Bank’s Stance on Crypto Exchange Ban

The Central Bank aims to enforce a crypto exchange ban, allowing only a select few trading platforms to operate within a special sandbox for sanctions-evading, cross-border trade payments. However, Gorelkin indicated that lawmakers find this proposal impractical. He noted that the Committee on the Financial Markets had successfully removed the clause prohibiting the organization of cryptocurrency circulation. The lawmaker elaborated:

Ban on Crypto Advertisements

Gorelkin further disclosed that lawmakers will uphold a proposed ban on advertising crypto-related products and services in Russia.

There was mixed news for domestic crypto miners. The State Duma’s Energy Committee is reportedly set to reject a proposal to limit the amount of electricity private individuals can use to power their rigs. Gorelkin mentioned that proposals to entirely ban individual crypto mining “did not pass” the committee stage.

The lawmaker suggested that the Duma is now poised to pass legislation allowing companies to use crypto as a settlement tool in international trade. The Central Bank, however, insists that companies use a government-approved sandbox for all such transactions. Gorelkin hinted that politicians might not disclose further details about the sandbox, stating:

Legislative Race Against Time

Both the mining bill and a separate bill on the sandbox’s launch have cleared their first readings in the Duma. Lawmakers face a time crunch to meet their deadline, as both bills require a second and third reading, along with two additional committee discussions. The Financial Markets Committee has confirmed that the sandbox bill is ready for a second vote.

Plus World reported that the legislation includes a provision to establish a regulator for “settlements made in digital currencies.” Lawmakers are now set to vote on the bill on July 30.

Previously, Putin mentioned that crypto mining accounts for 1.5% of Russia’s total energy consumption and suggested that many regions should have the authority to impose local bans on crypto mining.