Russia may move forward with partial legalization of cryptocurrency next year. This was stated by Anatoly Aksakov, chair of the State Duma Financial Market Committee, according to TASS reports.
He asserted that crypto will appear as a legal product next year, though it cannot serve as a domestic means of payment within the Russian Federation. The deputy stressed that the shift will take place within a regulated framework and expressed confidence that the corresponding bill could win parliamentary approval and gain presidential sign-off.
Aksakov noted that reconciliations have been arranged and that the digital asset would be used to settle parallel imports and related deliveries to Russia. He also explained that, for now, crypto is used informally, with questions about establishing a formal framework, tax rules, and clear regulation still to be resolved.
The deputy added that a bill on partial legalization for international settlements was planned for adoption in 2022, but given the lengthy approval process, the timeline shifted to January 2023. He admitted that the pace did not meet expectations but remained hopeful that reconciliation procedures would wrap up soon.
Ministry of Finance vs. the Central Bank
In February, the Russian Ministry of Finance submitted a draft law on digital currencies to the government. The document reiterates a prohibition on using cryptocurrencies as a means of payment in Russia and treats digital currencies as an investment instrument instead.
There was also a proposal to create a dedicated register of exchanges and brokers to oversee cryptocurrency circulation in the country. Transactions tied to crypto trading would require identified customers, and deposits or withdrawals between customers and operators would be possible only through banks and bank accounts.
On May 27, the Ministry of Finance completed the draft on Digital Currencies after reviewing input from the Ministry of Economic Development, the Ministry of Internal Affairs, the Ministry of Digital Development, the Federal Tax Service, Rosfinmonitoring, and the Center for National Projects of the Analytical Center under the Government.
The Central Bank of Russia opposes the legalization of cryptocurrency and has submitted its own regulation proposal to the Ministry of Finance, including a ban on mining, circulation, and possession of digital currencies, with penalties up to a million rubles for violations.
On October 5, Ivan Chebeskov, director of the Financial Policy Department at the Ministry of Finance, told Izvestia that Russian companies conduct some international transactions using cryptocurrencies, though regulation is not yet in place. He suggested that cross-border cryptocurrency transactions could begin to operate in 2023, while noting that businesses are already engaging in limited activity, even as the Central Bank maintains its restrictive stance.
The regulator has declared that free movement of cryptocurrencies in Russia will not be allowed.
Can Russians use crypto?
On October 5, Anatoly Aksakov stated that using cryptocurrency as a payment method in the Russian market should be treated as a crime. He described the number of people involved with crypto as substantial and emphasized the need to streamline processes. The immediate stance is a strict prohibition on payments in crypto and accountability for violations.
Nevertheless, he indicated that using cryptocurrency to pay for goods imported into Russia could be acceptable. He added that if there is an opportunity, including payments for goods supplied to Russia, to operate in a more permissive jurisdiction, that option should be considered.
On November 24, Finance Minister Anton Siluanov said that the Ministry of Finance and the Central Bank have not reached a consensus on regulating cryptocurrencies. He suggested a gradual approach to developing the crypto market, arguing for legalization to reflect real activity while acknowledging that the Central Bank holds a different view. Siluanov also noted that digital assets have become tools for many operations, often conducted on foreign infrastructure and, thus, largely outside the law. He argued that it would be better to regulate them formally than leave them ungoverned.
In June 2022, Central Bank head Elvira Nabiullina stated that if a digital currency does not become part of the Russian financial system, it could nonetheless be used for international payments. She warned that cryptocurrency should not be traded on organized exchanges due to volatility and risk for investors.