According to the latest announcement from Chairman of the State Duma Committee on Financial Markets, Anatoly Aksakov, Russia will officially impose a nationwide ban on cryptocurrency circulation from September 1. This decision is intended to prioritize the development and use of the digital Ruble, while limiting the impact of other cryptocurrencies on the Russian economy.
The ban will cover all activities related to Bitcoin and other cryptocurrencies, excluding digital financial assets issued and regulated within Russian jurisdiction. This means that only digital Rubles are allowed to circulate and be used.
Mr. Aksakov explained that the main reason behind the ban is the rise of cryptocurrencies as an alternative currency to the ruble in the country. This affects the position of the ruble and poses risks to the stability of the national financial system.
Previously, a bill on the regulation of cryptocurrency mining activities was submitted to the State Duma, proposing to ban the circulation of cryptocurrencies and allow mining activities only in exceptional cases, such as Central Bank pilot project. According to Statista, cryptocurrency miners have generated more than $2.59 billion in liquidity for foreign trade in Russia.
Russia's move comes in the context that many countries around the world are looking for ways to manage and control the cryptocurrency market. Prioritizing the digital Ruble shows that Russia is aiming to build a sovereign digital financial system and have tighter control over domestic money flows.
However, Russian policymakers are debating this approach. Artem Kiryanov, Deputy Chairman of the State Duma Economic Policy Committee, called for clear regulations in digital laws, while Finance Minister Anton Siluanov supported regulation to allow the use of cryptocurrencies in both domestic and international transactions.
Recent reports show that Russian organizations have used Tether's USDT to purchase important components for military technology. A typical case is that Andrey Zverev, a Russian employee in China, used USDT in 2022 to buy drone components for military operations in Ukraine to bypass traditional banking channels and avoid interference. supervision of financial institutions.
