Pi Network Users in Russia Face Uncertainty as Government Proposes Crypto Circulation Ban

The Russian Finance Ministry has reportedly put forward a proposal to ban the circulation of cryptocurrencies in the nation. However, exceptions are expected to be made for stablecoin issuers and crypto miners, according to sources familiar with the matter.

Sources revealed to the news agency Interfax that the proposed ban on crypto circulation could be included in the long-awaited crypto mining legalization bill, which has faced numerous delays. It is reported that the finance ministry has already drafted the proposed legislation.

The main focus of the proposed legislation is to officially permit industrial crypto mining operations in Russia. The country’s crypto mining sector is already well-developed, owing to its abundant energy resources and frigid winter climate, which are conducive to mining operations.

Presently, mining is not recognized as a legal form of business in Russia, and it cannot be taxed in accordance with formal regulations. This lack of legal recognition has created uncertainty in the industry.

While the proposal aims to ban the circulation of cryptocurrencies, it is expected to provide certain exemptions for stablecoin issuers and crypto miners. Stablecoins, which are pegged to a stable asset like a fiat currency, could potentially be permitted due to their reduced volatility and perceived stability. Crypto miners may also be given exceptions, allowing them to continue their operations legally, thus bringing them under the regulatory framework.

In light of these developments, it remains uncertain how this proposed ban on crypto circulation will specifically impact Pi Network users in the region. As Pi Network is a cryptocurrency project, its users in Russia might face restrictions on using and transacting with the Pi cryptocurrency. However, the extent and implementation of such restrictions would depend on the finalization of the proposed legislation.

As the situation continues to evolve, Pi Network users in Russia are advised to closely monitor the regulatory updates and guidelines provided by the Russian government and relevant authorities.