Russia Slams Door on Crypto Payments: Ruble-Only Mandate Tightens Grip
Moscow draws a hard line in the digital sand, outlawing cryptocurrency for everyday transactions and demanding the ruble reigns supreme.
The Legal Crackdown
New legislation strips crypto of its payment utility within Russian borders. Forget buying your morning coffee with Bitcoin—the law now explicitly bans settling for goods, services, or wages with any digital asset not issued by the state. It's a full-throated endorsement of the national currency, forcing all domestic commerce back into the ruble's fold.
Market Reactions and Workarounds
The move sends a chill through Russia's vibrant crypto community, long accustomed to using digital coins to bypass traditional finance. While trading and holding assets like Bitcoin remain legal, their core function as money gets neutered overnight. Expect a surge in peer-to-peer and over-the-counter deals—the old financial dance finding new, quieter steps.
Global Ripple Effects
Russia's stance throws another log on the global regulatory bonfire. It pits the Kremlin's desire for monetary control against the borderless ethos of crypto, creating a fascinating pressure point for sanctions evasion and capital flight narratives. Other nations watching from the sidelines now have a fresh case study in heavy-handed currency protectionism.
This isn't just a policy shift—it's a power play. By forcing the ruble, the state isn't just protecting its currency; it's reinforcing the age-old government monopoly on what constitutes money, betting that digital disobedience is a risk it can't afford. Another reminder that when finance and sovereignty clash, the central bank's ink always dries first.
Regulatory tug-of-war intensifies
Since 2020, Russia has banned the use of cryptocurrencies for payments, causing a long fight between the Ministry of Finance and the central bank. The ministry wants to regulate crypto exchanges and tax profits, while the central bank is pushing for a full ban similar to China. Because of this disagreement, bills have stalled for years, leaving the rules unclear.
Recently, however, the Ministry of Finance appears to be gaining ground. Russia’s President Vladimir Putin has acknowledged the growth of Russian crypto mining. Evgeny Masharov, a member of the Civic Chamber’s Commission for Public Review of Bills, also echoed the ministry’s stance, emphasizing urgent regulation.
“If [cryptocurrencies] were legalised, federal budget revenues WOULD see a significant increase,” Masharov told OCN. He added that proper regulation would help law enforcement prevent money laundering and fraud, particularly from voice phishing attacks.
Global caution and U.S. crypto limits
This act is in line with cautiousness in global developments. Towards the end of November, a statement by China’s central bank indicated that stablecoins are not money and cannot be used to replace cash. The People’s Bank of China also hosted a high-level discussion forum on speculation involving VIRTUAL currencies.
The need for stablecoins is also emphasized as stablecoins do not comply with the requirements under the laws regarding the identification of users, as well as money laundering. Therefore, it is clear, as the need is stated by both countries, that cryptocurrencies are supposed to be investment products and not currency.
On a different front, Pennsylvania state lawmakers restricted the role of cryptos for public office-holders in August of this year. HB1812 legislation forces leaders and their relatives to dispose of digital currencies such as Bitcoin, NFTs, and meme coins within the first 90 days of taking office. This includes one year after office for any policy alterations that may affect personal crypto assets.
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