Proposed Ban on Digital Currency Circulation Divides Russian Lawmakers

In a recent debate within the State Duma, a divide has emerged over the future of digital currency use in Russia. Last week, amendments targeting the regulation of mining and the cryptocurrency market were presented. Proponents of the amendments argue for a stringent ban on the circulation of virtual currencies outside designated experimental-legal frameworks, according to Coinspot.

Anatoly Aksakov, chair of the Duma’s Financial Market Committee, reinforced the need for strict regulations. Contrarily, Mikhail Delyagin of the Economic Policy Committee voiced concerns over the proposed limitations. He highlighted that the defense industry, among others, relies on cryptocurrencies to bypass sanctions, acquiring various sanctioned goods and components with digital currency.

Despite existing laws that prevent the use of bitcoin and other virtual currencies for purchasing goods and services, they remain legal for circulation within the domestic market. Delyagin emphasized that it’s premature to assume the inevitability of this bill’s adoption, noting that the updated proposal is still under parliamentary discussion.