The Russian government is reportedly changing course on its plans to ban crypto exchanges, with lawmaker Anton Gorelkin indicating that there is serious concern about shutting down domestic crypto exchanges. There has been ongoing disagreement between ministries and the Central Bank regarding crypto mining and exchange-related policies, leading to an unregulated crypto sector. President Vladimir Putin has called on lawmakers to fast-track crypto mining legislation, with two bills expected to be passed before the parliamentary session ends on August 5. The Central Bank’s proposal to ban the organization of cryptocurrency circulation has been removed due to concerns among industry representatives.
Despite the potential ban on advertising crypto-related products and services in Russia, the ban on individual crypto mining did not pass the committee stage, allowing companies to utilize crypto as a settlement tool in international trade. There is a proposal for a government-approved sandbox for companies to operate in all such deals, although details about the sandbox have not been made public. With the passing of bills on crypto mining and the establishment of the sandbox, lawmakers are facing a race against time to meet their deadline for a second and third reading of the bills.
The proposed bills have already passed their first readings in the Duma, with the sandbox bill ready for a second vote and a regulator for settlements in digital currencies being included in the bill. A vote on the bill is scheduled for July 30, as lawmakers work to regulate the growing use of digital currencies in the country. President Putin has acknowledged the significant energy consumption of crypto mining in Russia, suggesting that regional bans on crypto mining may be necessary. The ongoing debate between lawmakers and the Central Bank highlights the complexities of regulating the crypto industry within Russia.
The potential legalization of industrial crypto mining in Russia could have significant implications for the country’s economy and technology sector. Lawmakers are working to navigate the challenges of regulating the crypto industry while also promoting innovation and economic growth. The proposed sandbox for crypto exchanges and settlements in digital currencies reflects efforts to strike a balance between oversight and fostering a thriving crypto sector. As Russia grapples with the impact of crypto on its energy consumption and economic activity, the decisions made by lawmakers in the coming weeks could shape the future of the country’s digital economy.
