Russian bill would legalize crypto mining
On November 17, a bill that would legalize cryptocurrency mining and the selling of the cryptocurrency mined was introduced into the Russian State Duma, the lower house of parliament. At the moment, Russia forbids the use of cryptocurrencies for payments.
The proposed law reads, “Digital currency obtained as a result of mining can be disposed of by the person who carried out the mining of this digital currency on the condition that Russian information infrastructure is not used in conducting transactions with it, with the exception of cases of transactions carried out in accordance with the established experimental legal regime,” as quoted by Interfax.
Anatoly Aksakov, the chairman of the Duma Financial Markets Committee, stated to the local media that he anticipated the legislation to pass all three parliamentary readings in December and enter into law on February 1. Several publications claim that the bill would become a law on January 1st. Akov stated: “Passage of the law will bring this activity into the legal field, and make it possible to form a law enforcement practice on issues related to the issuance and circulation of digital currencies.”
The experimental sales regime is now possible thanks to the 2020-passed law on digital innovation. The bill defines mining pools and cryptocurrency. Additionally, it forbids the promotion of cryptocurrencies in Russia.
If the law is passed, a Russian cryptocurrency market will be established, giving Russian miners access to international markets. In the latter case, there would be no Russian currency controls or rules, but the transactions would still need to be reported to the Russian tax authority. Although cryptocurrency mining is widespread in Russia, there is currently no legislation that controls the taxes associated with mining activities.
The Central Bank of Russia reported on November 7 that the country was getting ready for the acceptance of digital assets on its marketplaces. The Moscow Exchange produced a law in September to allow trading in digital financial assets on behalf of the Central Bank. According to a Nov. 18 story in the Izvestia newspaper, the exchange and prominent Russian brokerages were getting ready for the entrance of regular investors.
The Central Bank of Russia reported on November 7 that the country was getting ready for the acceptance of digital assets on its marketplaces. The Moscow Exchange produced a law in September to allow trading in digital financial assets on behalf of the Central Bank. According to a Nov. 18 story in the newspaper Izvestia, the exchange and prominent Russian brokerages were getting ready for the entrance of regular investors.
A Russian policy on the use of cryptocurrencies in foreign payments was formulated in September. Russian cryptocurrency users and miners must deal with both national legislations and foreign sanctions.
CBW - External Analyst