Brace yourselves, Russian crypto users, a potential freeze is on the horizon. Lawmakers are pushing for a "crypto ban" that could come into effect as early as September. This wouldn't be a complete shutdown, but it would drastically alter the cryptocurrency landscape in Russia.

The Central Bank Calls the Shots

The driving force behind this move is the Central Bank, which has long advocated for a China-style crypto ban. While government ministries favored a more regulated approach, a compromise has been reached.

What's Banned, What's Not?

The proposed bill targets the "organization of circulation" of cryptocurrencies like Bitcoin. This means crypto exchanges operating outside the Central Bank's control could be shut down. However, there are exceptions:

Russian-made digital assets: These include digital coins issued by Russian banks and the Central Bank's digital ruble project. Essentially, they want to keep crypto domestic.

Miners and Mining Pools: They seem to be getting a free pass, for now.

Test Projects: The Central Bank wants to keep a tight leash on any sanctioned crypto experimentation.

Unanswered Questions and Worries

While some lawmakers like Anton Gorelkin claim the bill won't "prohibit" individual ownership, the devil's in the details. Here are some lingering concerns:

Will Russian banks stop processing crypto transactions? This would be a major blow to everyday crypto users.

What about overseas exchanges?

A Paradoxical Protection?

Lawmaker Gorelkin argues the ban is a "protectionist measure" to shield businesses from Western sanctions. However, it's unclear exactly how restricting access to a global market achieves protection.

The Future of Crypto in Russia

With the bill likely to pass, September could mark a turning point for Russian crypto. While complete ownership might not be outlawed, using and trading crypto will likely become a more tightly controlled activity under the watchful eye of the Central Bank.

The question remains: Will this new regulatory winter chill the once-vibrant Russian crypto scene, or will it simply force it to adapt and operate within a stricter framework?