“On Friday, July 12, the State Duma Committee on the Financial Market approved the final version of the draft law on restrictions on the circulation of cryptocurrencies in Russia.
The bill on restrictions on the circulation of cryptocurrencies in Russia, which was approved by the State Duma Committee on the Financial Market, contains several key provisions that could significantly change the landscape of the cryptocurrency market in the country.

  1. Restrictions on turnover and advertising:

    • The bill prohibits the organization of cryptocurrency circulation, including the creation of crypto exchanges and exchangers outside the coverage area of ​​the experimental legal regime. Advertising of cryptocurrencies and their services is also prohibited.

    • The organization of cryptocurrency circulation on the territory of Russia will be illegal, which will entail a ban on the use of Russian infrastructure for cryptocurrency trading.

  2. Mining regulation:

    • Only Russian legal entities and individual entrepreneurs included in a special register will be able to engage in mining. Individuals will be allowed to engage in mining without being included in the register, but subject to compliance with energy consumption limits set by the government.

    • Miners will be required to report their operations to the tax service, which includes indicating the address where the mined cryptocurrency will be deposited.

  3. Protectionist measures:

    • The bill, despite the prohibitions, allows the use of foreign cryptocurrency exchanges and exchangers. In this context, restrictions are seen as measures to protect Russian business from Western sanctions.

  4. Consequences and reaction:

    • Experts predict that the adoption of this bill could lead to an increase in the number of criminal cases related to cryptocurrencies and further tightening of government control. This may also contribute to the outflow of business outside Russia and the growth of the shadow cryptocurrency market.

Therefore, if the bill is passed in its current form, the Russian cryptocurrency market could face severe restrictions and increased regulation, which would have a significant impact on market participants and overall industry dynamics.