Russia has shifted its stand regarding using cryptocurrencies for international payments after softening its stance on the potential use of cryptocurrencies in Russia. The Central Bank of Russia is now open to the legalization of cryptocurrency mining as long as the proceeds are converted to fiat outside Russia.

According to Kirill Pronin, head of Financial Technologies at the Russian Central Bank, crypto mining could be legalized if certain conditions are met. A public acknowledgment like this is rare, as the CBR has been fighting against efforts to legalize cryptocurrency.

CBR's executive director said that the company does not take the same kind of hardline position on mining as it does on general crypto legalization.

At the Saint-Petersburg International Legal Forum on Wednesday, Pronin said, "Despite the fact that we are speaking up consistently for the prohibition of cryptocurrencies’ turnover [...] the discussion regarding mining’ legalization is possible."

He added, "Ultimately, we must say that there should be an export of these mining services, and the mining business shouldn’t lead to accumulation of cryptocurrency in the country, so there won’t be a motivation for further usage in the internal payments."

The director of the Financial Policy Department of Russia's finance ministry has noted that some cryptocurrency mining companies are also restricted from withdrawals abroad; he suggests the country could build its own exchange infrastructure to meet cryptocurrency mining companies' needs.

Earlier this year, the lower chamber of the Russian parliament published a fresh draft of the mining law "On Mining in the Russian Federation." The latest draft spares mining operators from the requirement to register in a special registry.

Pavan A

CBW - External Analyst

INDIA