Russia introduces bill to regulate cryptocurrency mining
On July 27th, the Russian State Duma (parliament) proposed a bill to regulate cryptocurrency mining, aimed at curbing illegal activities and promoting investment and employment. The bill was proposed by the chairman of the Duma's financial market committee and received support from major representatives, calling for strict guidance on miners, including registration and government supervision. The bill also requires two readings before it can be fully passed into law. During the reading period, amendments may be proposed and discussed before the final vote. If passed, the law will take effect on September 1st. Supporters of the bill believe that this regulation will reduce the risks associated with illegal mining activities and increase the transparency of the law, thereby attracting investment and creating job opportunities in the industry.
Russia to impose cryptocurrency restrictions, exempting miners and central bank projects
Russia will implement cryptocurrency restrictions, exempting miners and central bank projects. Starting from September 1st, Russia will impose strict restrictions on the circulation of cryptocurrencies such as Bitcoin, only allowing the issuance of digital financial assets within its jurisdiction. Anatoly Aksakov, Chairman of the Financial Market Committee of the State Duma, led this initiative. This is part of a wider government effort to control the cryptocurrency ecosystem in the face of escalating geopolitical tensions. Aksakov stated that the upcoming legislation aims to restrict non-Russian cryptocurrency transactions to strengthen the dominance of the ruble. Meanwhile, recent reports indicate that Russian entities have used cryptocurrencies, particularly Tether's USDT, to purchase key components for military technology.
Russia’s Central Bank and Rosfinmonitoring unveil pilot of fiat-to-crypto tracking system
According to reports, since 2023, Russia has been trying to track cryptocurrency transactions and their sources. The Russian Central Bank and the Federal Financial Monitoring Service (Rosfinmonitoring) revealed that there is currently a system that allows private banks to track the connection between fiat-based transactions and cryptocurrency business.
Russia signs law allowing the use of digital assets for payments that avoid sanctions
This week Vladimir Putin signed a law allowing the use of digital financial assets (DFA) for foreign trade payments. The concept of DFA in Russia includes tokenized assets and financial instruments issued by central bank regulatory bodies. The central bank hopes to ensure that these assets do not start replacing the ruble, so the use of DFA for payments is prohibited. This situation still exists domestically, but they are looking for alternative solutions to avoid sanctions due to Russia's invasion of Ukraine. The legislation changes the definition of certain currency transactions to include digital rights such as DFA. In addition, the central bank can also establish conditions for the use of DFA for payments. The Russian central bank is a staunch supporter of anti-money laundering efforts. However, the Russian Federation Council stated in a statement that "due to the existing sanctions risk, federal law does not require information on the beneficial owners of persons issuing digital financial assets." The new law also allows for the transfer of insurance contracts, non-state pensions, and long-term savings through digital platforms. Typically, such assets are not transferable.
Governor of the Central Bank of Russia: The Central Bank of Russia is discussing the possibility of using central bank digital currency as a payment method in foreign trade
Elvira Nabiullina, the head of the Russian Central Bank, said that the Russian Central Bank is discussing the possibility of using central bank digital currency as a payment method in foreign trade. Nabiullina said that although Russia opposes the use of cryptocurrency payments in domestic transactions, the country is open to the idea of using cryptocurrency in foreign trade.
Chairman of the Russian State Duma Financial Markets Committee: Russian domestic companies are “already” conducting overseas cryptocurrency business
Anatoly Aksakov, Chairman of the Financial Market Committee of the Russian State Duma, stated that Russian domestic companies have already started overseas cryptocurrency business. Meanwhile, the Russian Central Bank hopes to accelerate its digital ruble project. The bank hopes that CBDC will provide an alternative solution for commercial and trade driven by the US dollar and cryptocurrency, and plans to launch it in 2025.
Russian tax authorities will start collecting taxes in digital rubles from 2025
The Russian tax authorities will start using digital rubles for taxation from 2025, and banks will be given the power to prevent "suspicious" CBDC transactions. According to Klerk, the latest tax law amendment signed by Russian President Putin at the end of last year states that the Russian tax authorities will "switch to using digital rubles for taxation from 2025". The media added that the Ministry of Finance hopes to "start paying pensions and other social benefits with digital rubles". As part of the expanded pilot program, government agencies promise to actively adopt digital rubles in 2024.
Russia’s non-cash turnover accounted for 64.2% in Q3 2023
According to a report by Glavportal, as cryptocurrency adoption increases and Russia prepares to launch its CBDC, more and more Russians are refusing cash and opting for "non-cash" payments. In the third quarter of 2023, non-cash turnover accounted for 64.2% of Russia's business, breaking the record of 63.3% set in the first quarter of the 2023 fiscal year. The authors of the study noted a +3.6% increase in the same period of the 2022 fiscal year. The Nenets Autonomous Okrug in the far north ranks first, with nearly 76% of payments made in non-cash form, followed closely by Yakutia and the Chechen Republic in Russia's Far East, with slightly over 75%.
Abkhazia resumes crackdown on cryptocurrency mining
Russia has been providing commercial electricity to Abkhazia since November. Local media reports that under this background, the authorities in Sukhumi have resumed their crackdown on cryptocurrency mining. The head of the capital, Beslan, emphasized that the authorities will tighten their means of combating illegal mining of cryptocurrency assets, and not only will the equipment be confiscated, but it will also be disposed of immediately. Astamur Haghush, the head of the Sukhumi Interior Ministry, said that inspections against mining have not stopped, and a total of 1,112 apartments, 712 households, and 405 basements have been inspected. Dzhambulat Arshba, the head of the SUES Energosbyt department, pointed out that by the end of this year, the number of electricity meters will reach about 13,000, and experts say this will cover more than 50% of users. Although cryptocurrency mining is currently prohibited, the regional authorities have approved special tariffs for miners in 2022.
Central Bank of Russia: 68% of financial pyramids are related to cryptocurrencies
The Central Bank of Russia stated that in the past 9 months, the number of financial pyramid schemes that raised funds or promoted digital asset investments with various cryptocurrencies has increased. Such projects account for 68% of the total number of pyramid schemes.
