Regulation
Russian Cryptocurrency Mining Bill Now Before Parliament
- Russia’s draft law on cryptocurrency mining is now before parliament.
- The laws will require cryptocurrency miners to register and disclose the amount they mine.
After several delays by the State Duma, Russia’s cryptocurrency mining bill is finally being submitted to parliament. Since May, Russian lawmakers have been creating legal frameworks to regulate cryptocurrency mining and other cryptocurrency-related activities in the country.
So, after a long wait, the State Duma, through the Financial Markets Committee, asked the lower house to vote on the bill on July 25.
Russian draft law on cryptocurrency mining
The Russian parliament is expected to debate and adopt the new bill on cryptocurrency mining later this month. According to the bill, the organization of cryptocurrency circulation will be banned from September 1, allowing only registered miners and central bank projects.
Moreover, only Russian companies and citizens registered in a special register for crypto projects will be able to mine cryptocurrencies.
Similarly, individuals can operate mines without registering if they meet established energy consumption guidelines in accordance with government standards.
The bill also provides for a ban on advertising digital assets and organizing their crypto circulation in the country. These laws aim to discourage individuals from engaging in mining activities.
Increased regulation on cryptocurrencies
Cryptocurrency mining in Russia, as in most countries, lacks a legal framework and exists under the radar.
The new bill, however, aims to eliminate legal loopholes in the cryptocurrency mining sector. The law will now help various Russian companies to conduct operations on a global scale.
Essentially, these regulations will give the Ministry of Digital Development the power to control how minors adhere to established rules and standards.
Therefore, the state will fully regulate the activities carried out by minors.
Bill tightens control of cryptocurrency miners
According to the new bill, all cryptocurrency miners in Russia must report to the authorities the amount of cryptocurrency they mine.
In addition, miners must provide authorities with the crypto addresses in which these tokens are stored. According to Russian lawmakers, this measure is essential to prevent money laundering, sponsorship of terrorism, and other illegal activities.
Similarly, the law allows authorities to ban cryptocurrency mining in specific areas, which raises concerns from the Ministry of Energy. The Ministry of Finance further hopes that the new law will ensure that cryptocurrency activities are left to a group of professionals.
Economic consequences of Western sanctions
Since Russia’s invasion of Ukraine, its financial system and economy have been facing massive sanctions. These sanctions have affected the ability of individuals to trade and use foreign currencies.
However, cryptocurrencies have played the role of a savior for many traders and individual investors. Therefore, through this bill, the state will try to circumvent these sanctions by relying on decentralized financial ecosystems.
Source: Statista