Despite the Central Bank's softer stance on crypto payments, Russia is expected to pass tough crypto legislation

According to the head of the State Duma Financial Market Committee, the measure 'On Digital Currency,' which aims to thoroughly regulate crypto transactions in Russia, would be a 'difficult' law. Despite the Bank of Russia's decision to abandon its objection to crypto payments, at least when they facilitate Russia's overseas trade amid sanctions, Anatoly Aksakov said in an interview that the legislation has yet to be finalized and would not be examined by lawmakers in the near future.

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Adoption of a Russian Cryptocurrency Law The Delay is Caused by the Ongoing Rules Debate

The Russian government is still debating how to regulate the crypto market, and it's unlikely that the draft law "On Digital Currency" will be filed with the State Duma anytime soon, according to Anatoly Aksakov, the Chairman of the Financial Market Committee in the lower house of Russian parliament.

According to Aksakov, Russian officials are presently debating the bill's third revision, and the discussions are intense. "I don't believe the document will be debated in the State Duma anytime soon." Despite prior promises that the law will be passed during the house's spring session, the situation in the crypto market does not inspire optimism. "Bitcoin has dropped a lot against the backdrop of sanctions decisions," the high-ranking deputy said.

The congressman pointed out that the US State Department has begun to crack down on the crypto area, based on the assumption that bitcoin is being used to evade Russian sanctions. "There are concerns that American intelligence agencies control a major portion of this market, therefore there is no desire to do business under their watchful eye, whether invisible or apparent," Aksakov continued.

The Russian Central Bank is not opposed to international crypto payments

The measure "On Digital Currency," which the Russian finance ministry first filed to the federal government in February, is likely to be accepted in its tougher version, according to Aksakov. He went on to say that this includes the creation of a centralized platform for digital currency exchange, settlements, and other procedures.

In recent months, Russian officials have been working on legislation, with most institutions supporting the Ministry of Finance's regulatory approach, which favors legalization of crypto-related activities such as trading and mining under strict government control while prohibiting the use of bitcoin and other cryptocurrencies in payments.

With its campaign for a comprehensive ban, including on the issuance and trade of cryptocurrencies, the Central Bank of Russia (CBR) has found itself isolated. The central bank has recently changed its stance, supporting a proposal to use digital currency for international payments but maintaining that crypto assets pose a risk to the country's financial system.

The CBR's First Deputy Chairman, Ksenia Yudaeva, told the Kommersant business daily that the regulator does not oppose the use of cryptocurrencies "in international transactions and the international financial infrastructure" during a news conference. The Minfin's draft law now includes a section that allows crypto payments in international trade.