According to a recent report, Russia’s Duma has approved a bill to legalize Bitcoin mining and crypto payments. This move, passed in the first reading, sets the stage for a regulated digital currency mining industry. The bill aims to curb illegal activities, attract investments, and create jobs, marking a significant shift in the country’s approach to cryptocurrencies.
Russia Duma’s Legal Framework For Bitcoin Mining
The bill, introduced by a group of deputies led by Anatoly Aksakov, Chairman of the Duma Committee on Financial Markets, establishes clear guidelines for Bitcoin mining. According to the report from RIA Novosti, it aims to reduce illegal mining activities and related offenses by implementing strict controls.
According to Nikita Chaplin, a member of the Budget and Taxes Committee, the regulation will make it harder to use digital currencies for illegal transactions. He also noted that the miners mined around 54,000 Bitcoins worth over $3.5 billion last year.
Meanwhile, the draft law outlines the requirements for individuals and legal entities involved in digital currency mining. The government, in agreement with the Bank of Russia, will set these standards. In addition, the Ministry of Digital Development will oversee compliance, ensuring that mining activities adhere to the established rules.
However, the government can also ban crypto mining in specific regions if necessary, the report notes. Only registered legal entities and individual entrepreneurs can mine in the country. However, citizens who are not entrepreneurs can mine without registration if they stay within the energy consumption limits set by the Cabinet of Ministers.
The procedure for maintaining this register will be detailed in a government regulatory act. Additionally, legal entities and entrepreneurs are prohibited from combining mining with electricity-related activities. This separation aims to prevent conflicts of interest and ensure fair play in the energy market.
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Regulation & Compliance Focus
The bill mandates miners to report the digital currency obtained from mining and the address identifiers used for transactions. This information will be provided to a government-authorized body. Additionally, Rosfinmonitoring will compile a list of suspicious cryptocurrency addresses to aid in anti-money laundering (AML) efforts and prevent terrorist financing.
Meanwhile, the bill will also allow the selling of mined digital currency without using Russian information infrastructure. However, it prohibits the circulation of digital currency within Russia, except for mining and distribution within mining pools. Besides, advertising or offering cryptocurrencies to the public is also banned, along with promoting goods and services related to digital currency issuance.
If enacted, the law will come into force on September 1, 2024. This regulation represents a significant shift in Russia’s stance on the cryptocurrency landscape, aiming to foster a controlled and legal digital currency market.
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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
