Bitcoin mining bill advances in Russia, awaits State Duma vote in late July
Currently, crypto mining exists in a legal grey area in Russia, where it's not explicitly legal or illegal.
Key Takeaways
- A bill legalizing crypto mining in Russia is expected to be voted on by the State Duma later this month.
- Miners would be required to report their mining activities and comply with anti-money laundering protocols under the proposal.
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The State Duma’s Committee on Financial Markets recommended the lower House of the Russian Parliament approve the bill on regulating Bitcoin and altcoin mining activities, according to a recent report from Russia’s news agency TASS. The State Duma is scheduled to consider the bill during its session on July 23.
Proposed by Russian Deputy Anatoly Aksakov, the bill seeks to create a structured legal environment for crypto mining, which currently exists in a legal grey area in Russia. It is set to provide a clear framework for legal entities and individuals engaging in mining.
The bill stipulates that the Russian government, in agreement with the Bank of Russia, will establish requirements for individuals and legal entities engaging in crypto mining, including mining pool participants. The Ministry of Digital Development will be responsible for ensuring compliance with these requirements.
Under the proposed law, only registered Russian firms and individual entrepreneurs would be allowed to mine cryptos, while private individuals could mine within set energy consumption limits, the report added. The government will establish the procedure for maintaining this registry through normative acts.
In addition, the bill will implement measures to control the circulation of digital currency to prevent its use for money laundering, terrorism financing, or other criminal activities. The government would have the right to restrict mining in certain areas.
The bill prohibits crypto advertising and circulation. Miners would have to report their mining activities and provide address identifiers to an authorized government body. They would also be prohibited from combining mining activities with activities related to electric power, the report wrote.
Russia’s progress in crypto regulation comes amid ongoing sanctions following the invasion of Ukraine. The authorities are exploring alternative ways to strengthen the nation’s international payment capabilities and reduce its reliance on Western financial systems.
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