Russia introduces bill banning crypto transactions. Russian lawmakers have introduced a set of draft bills regulating digital assets earlier this month. This effectively bans any transactions using crypto within the country’s borders. In response, the crypto community has filed a number of protest letters.
If the proposed regulation is passed, the Russian economy could lose up to $10 billion in taxes annually. RAKIB, a crypto lobbying group wrote in a letter to the bills’ sponsor Anatoly Aksakov stating that this is something the crypto industry would otherwise be able to pay if it could operate legally. A copy of the letter has been sent to Maxim Reshetnikov, head of the Ministry of Economic Development.
Aksakov, a member of the Russian parliament (the State Duma), previously told news agency Interfax that Russians would be able to purchase cryptocurrencies on exchanges registered abroad but not in Russia. They will have to report their crypto for tax purposes at home.
RAKIB’s letter says one of the bills introduced prohibits the issuance of cryptocurrencies using servers located in Russia and web domains registered in the country. This means that local crypto businesses will have to leave for other jurisdictions.
Russia will lose the opportunity to maintain technological leadership and “build a new Iron Curtain” cutting it off from the global tech infrastructure and force young tech talent to work abroad.
An advocacy group called The Chamber of Commerce and Industry warned that the new regulation would endanger the constitutional rights of Russians and provoke abuse of power by law enforcement agencies.