The Duma was proposed to ban the organization of cryptocurrency circulation in Russia

An exception will be made for experiments of the Central Bank and for miners

Moscow. 26 April. INTERFAX.RU – State Duma deputies propose to ban the organization of cryptocurrency circulation in Russia from September 1, 2024, making an exception only for miners of digital currencies and test projects of the Central Bank within the framework of the experimental legal regime (EPR).

This is stated in bill No. 237585-8, this is a new version of the bill on regulation of cryptocurrency mining. Technical clarifications have been made regarding the work of miners. It is proposed to add provisions to Article 14 of Law 259-FZ “On digital financial assets, digital currency and on amendments to certain legislative acts of the Russian Federation”: “in Russia, the organization of circulation of digital currency is prohibited. The exception is the mining of digital currency and the operation of mining pools. Also advertising of digital currencies, advertising of the organization of circulation of digital currency is prohibited.”

The current legislation prohibits payments in cryptocurrency on the territory of Russia, but there is no ban on circulation.

The bill describes in detail what should be considered the organization of circulation of digital currency in Russia:

– provision of services on the territory of Russia aimed at ensuring the completion of civil transactions or operations entailing the transfer of digital currency from one owner to another, if at least one of the parties to these transactions is a Russian legal entity or branch, representative office or other separate division an international organization, and also if the party to the transaction is an individual who is actually in Russia for at least 183 days over the next 12 consecutive months (i.e. if an individual who is a resident of the Russian Federation participates in the transaction).

– provision of services on the territory of Russia aimed at ensuring the completion of civil transactions or operations entailing the transfer of digital currency from one owner to another, if objects of the Russian information infrastructure are used in carrying out this activity.

At the same time, the currency mined by miners must also be sold without using Russian infrastructure, it follows from the bill.

“Taking into account the risks associated with the circulation of digital currency, the bill provides for the possibility of selling digital currency obtained as a result of mining without the use of Russian information infrastructure. In addition, the bill directly prohibits the organization of circulation of digital currency on the territory of the Russian Federation,” the explanatory note says.

On April 22, it was reported that deputies introduced a revised bill No. 341257-8, which proposed, from September 1, 2024, to give the Central Bank the authority to create an experimental platform for the use of cryptocurrencies in international payments. The regulator will have to coordinate a number of steps during the experiment with Rosfinmonitoring, the FSB and the Ministry of Finance.

As a result, from September 1, 2024, only miners with a number of restrictions and the Central Bank will receive the right to organize the circulation of cryptocurrencies in Russia, as part of the work of the EPR.

Amendments to the Code of Administrative Offenses, the Criminal Code and the Code of Criminal Procedure regarding liability for the illegal circulation of cryptocurrencies have not yet been submitted to parliament.