- Russia crypto mining bill is now set for parliament.
- The laws will require crypto miners to register and disclose amount they mine.
As a seasoned researcher with a background in technology and finance, I have closely followed the developments surrounding crypto mining in Russia. Having lived through the economic instability caused by Western sanctions against my home country, I understand the importance of having a legal framework for crypto mining.
As a crypto investor following the Russian market, I’m excited to share that after several hold-ups in the State Duma, the long-awaited crypto mining bill is now set for Parliament consideration. Since May, our lawmakers have been diligently working on creating legal frameworks to regulate and oversee cryptocurrency mining and other related activities within our borders. This development will bring much-needed clarity and certainty to the Russian crypto scene.
After a prolonged delay, the Financial Markets Committee of the State Duma has proposed that the legislative body hold a vote on the relevant bill on the 25th of July.
Russia’s crypto mining bill
Russia’s Parliament is slated to discuss and approve a new cryptocurrency mining legislation towards the end of this month. As per the proposed bill, the act of circulating crypto will become illegal starting September 1st, with the exception of authorized miners and central bank-approved projects.
As an analyst, I would put it this way: I’d like to add that only entities owned by Russians and listed on a specific registry for cryptocurrency initiatives are authorized to engage in crypto mining activities.
Just like businesses, individual miners can mine without registration as long as they comply with the government’s regulations regarding energy consumption.
Additionally, the proposed legislation bans advertising for digital assets and restricts crypto transactions within the nation’s borders. These measures aim to deter citizens from engaging in cryptocurrency mining.
Increased crypto regulation
Crypto mining in Russia, like most countries, lacks a legal framework and exists under the radar.
The new bill intends to close legal gaps concerning crypto-mining in Russia. Consequently, it will facilitate international transactions for numerous Russian businesses.
In simpler terms, the Ministry of Digital Development will have the power to oversee and ensure that miners comply with established guidelines and regulations.
Therefore, the state will have total regulation on activities that miners conduct.
Bill tightens control for crypto miners
Under the newest legislation in Russia, crypto miners are required to disclose the quantity of cryptocurrency they produce to the relevant authorities.
Furthermore, cryptocurrency miners are required by law to disclose the specific digital wallet addresses where they keep the mined tokens. This measure, as proposed by Russian legislators, aims to prevent unlawful activities such as money laundering, financing terrorism, and other criminal transactions.
Similarly, the law grants the authorities the power to prohibit cryptocurrency mining in certain regions due to objections raised by the Energy Ministry. Additionally, the Ministry of Finance anticipates that this new legislation will restrict crypto activities to a select pool of experts.
Implication on economy amid western sanctions
As a financial analyst, I’ve observed that since Russia’s invasion of Ukraine, the country has endured significant economic consequences, including extensive financial sanctions. Consequently, these measures have impeded individuals’ capacity to engage in foreign currency transactions and trade activities.
Despite cryptocurrencies serving as a lifesaver for numerous individual traders and investors, the proposed bill aims to circumvent these sanctions by utilizing the decentralized financial systems instead.
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2024-07-15 16:07