This significant policy shift was announced by Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Market.
The move aims to reinforce the primacy of the Russian ruble as the sole legitimate monetary unit within the country.
Awaiting Impact of Russia’s Cryptocurrency Ban
Aksakov highlighted the disruptive potential of cryptocurrencies, which he referred to as “quasi-currencies.” According to him, these digital assets have begun to substitute the ruble in various financial transactions across Russia. The cryptocurrency ban aims to stabilize Russia’s economy by prioritizing the ruble in all economic transactions.
The implications of this policy are profound for both domestic and international markets. For domestic users and businesses using cryptocurrencies, the ban necessitates a quick shift to state-approved digital assets or traditional financial systems. This could involve significant adjustments in their operational models as well as their investment strategies.
JUST IN: Starting September 1st, 🇷🇺Russia to ban the use of all cryptocurrencies within their borders except for digital financial assets issued by the state 😮
"The need for the ban is because today cryptocurrency is a quasi-currency that replaces the ruble in the country. But… pic.twitter.com/BpRvN8Pv3J
— Bitcoin News (@BitcoinNewsCom) April 29, 2024
Internationally, Russia’s stringent stance on private cryptocurrencies might influence other nations’ policies on digital assets, especially in regions where the economic influence of cryptocurrencies is becoming increasingly pronounced. It could also impact the global cryptocurrency market by reducing the volume of participation from Russian users, which might lead to shifts in market dynamics and valuations.
More About Russia’s Policies
According to the Russian press, Russia is extending its stringent crypto regulations to include a ban on advertising these digital assets. Under the new regulations, only miners and projects approved by the Central Bank will have legal operating rights.
This cryptocurrency legislation update has sparked controversy and highlighted regulatory tensions. It raises concerns among stakeholders about the future of digital assets in Russia.
Disclaimer
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