Russia has no plans for a total crypto ban, lawmaker says

• Russia will not impose a total ban o cryptocurrency transactions in the country as some reports claimed.
• That’s according to Anton Gorelkin, the Deputy Chairman of the State Duma Committee on Information Policy, Information Technologies, and Communications.

Reports that Russia is eyeing a complete ban on crypto turnover in the country amid geopolitical tensions are incorrect, a lawmaker has said.

Earlier reports cited new legislation aimed at controlling the crypto ecosystem as Russia looks to promote its digital finance system and the ruble.

No ban on crypto turnover

On Monday, Anton Gorelkin, the Deputy Chairman of the State Duma Committee on Information Policy, Information Technologies, and Communications, dismissed these assertions, which had earlier been attributed to State Duma officials.

Goreklin said in a Telegram post that, while a new bill looks at banning cryptocurrency exchanges in the country, it does not seek a total ban on crypto turnover.

Local media outlet gazeta also highlighted Goreklin’s comments.

“It’s surprising that even some respected publications wrote that “deputies want to ban the circulation of cryptocurrencies in Russia,”” he wrote.

According to the lawmaker, the new bill seeks to introduce mechanisms that will help identify illegal or criminal crypto transactions. It wouldn’t make sense to have this in the bill if the purpose is to consider everything illegal, Goreklin added.

He emphasized that Russia will not ban crypto turnover. However, the quest is to prohibit crypto exchanges and other crypto platforms not part of the government’s pilot programs.

The lawmaker also noted that restricting crypto exchange operations is geared towards limiting potential exposure that allowing them would portend in terms of Western sanctions.

Despite this, crypto users will still access foreign cryptocurrency exchanges and over-the-counter (OTC) service providers.  

The latest crypto developments in Russia unfold as recent reports suggest that some Russians and business entities have tapped into crypto to evade sanctions scrutiny.