Russia Considering ‘Serious’ Control Over Crypto as Legalization Ramps Up

Updated: 28 June 2023

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Crypto regulation is still a no man’s land, with many world governments struggling to make significant progress.

However, Russia seems to be leading the race as a state official says the European powerhouse is set to exert serious control over the digital asset marketplace.

Russian Crypto Owners Welcoming of Regulation

The crypto market is largely decentralized, with no central authority in charge. As a result, governments worldwide have adopted different approaches to regulating this emerging industry.

So far, many have taken two paths – regulation by litigation or outright ban. Russia seems to be on the verge of redefining the crypto regulatory landscape.

Anatoly Aksakov, the Chairman of the Financial Markets Committee of the Russian State Duma, has expressed Moscow’s intention to establish clear regulations for cryptocurrency transactions and service providers operating within its jurisdiction.

🚨BREAKING🇷🇺: Russia Eyes 'Serious' Control over #Crypto

Chairman Anatoly Aksakov emphasizes the government's intention post-legalization.

Crypto users eagerly await crypto's legalization to leverage digital assets for international settlements. #Cryptocurency #cryptocurrency pic.twitter.com/5xbXTqZC96

— Bitinning (@bitinning) June 28, 2023

According to local media, Aksakov noted that cryptocurrencies would be legalized.

However, he emphasized that the government will implement stringent control measures to prevent any misuse of the nascent industry.

The lack of consumer protection and the potential for illicit fund transfers have raised concerns among governments regarding the digital asset marketplace.

However, Aksakov assured the Russian government would not allow the crypto space within its jurisdiction to operate without regulation.

Aksakov acknowledged the positive response from cryptocurrency owners in Russia regarding the legalization of the ecosystem.

The government official also pointed out that many users were keen on using the virtual currency space to enable seamless transaction settlement across international borders.

So far, the Chairman of the lower chamber of the Federal Assembly has thrown his full support behind creating a taxation structure as well as rights for cryptocurrency users in the country. Aksakov has also championed investor protection in the crypto space to position the country as a major crypto hub for the emerging ecosystem.

Russia’s Reputation Impeding International Collaborations

For over a year, the Russian State has been engaged in continuous conflict with Ukraine, resulting in the imposition of multiple international sanctions.

These sanctions have significantly hindered Russia’s capacity to conduct business globally.

However, there is potential for change if cryptocurrencies are legalized in the coming months.

Aksakov, in addressing the financial challenges faced by the country, highlighted that many foreign banks are hesitant to transact with Russia.

In this context, cryptocurrencies could facilitate international settlements and offer a means to boycott these sanctions.

For now, Aksakov said Moscow is focused on drafting a bill for crypto regulation next October.

This is in direct contrast to earlier reports that the State Duma was looking at releasing four crypto laws during its spring session come July 30th.

Meanwhile, the country is gradually positioning itself as a Bitcoin mining powerhouse.

About #Bitcoin mining in Russia from the St. Petersburg Economic Forum🇷🇺

– Mining is given the green light by the government
– Many established capital players are entering the industry
– Many power companies are involvedhttps://t.co/bbpdKuK53b

— Jaran Mellerud 🟧⛏️ (@JMellerud) June 16, 2023

According to a June 16th tweet, Russia is slowly catching up to the US regarding mining hash rates passing countries like China in the process. This follows the government’s recent approval of the practice in the country.