Russia to treat export of crypto mining as a commodity
Russia can potentially reshape global geopolitics through its involvement in crypto mining.
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The Russian Ministry of Finance has proposed a new approach to treat domestically mined cryptocurrency as an exportable commodity akin to natural gas. This concept was introduced by Ivan Chebeskov, the Minister of Finance, during a discussion on the future of digital finance in Russia.
Under this initiative, the Ministry plans to create a legislative framework that allows miners to export their mined cryptocurrency, treating it as a product of their mining activities. They draw inspiration for this framework from the laws governing natural gas exports.
“There is an option, a bill to use the export of cryptocurrency as a product of mining activity,” the Ministry stated.
He also informed about an agreement with the Central Bank of Russia that supports recognizing cryptocurrency mining as a legitimate industry. They are exploring ways to enable the use of cryptocurrencies in international economic transactions as part of an experimental phase.
The proposed bill permits cryptocurrency miners to sell their mined assets actively on international platforms, bypassing Russian information systems. It outlines two mining methods: using global systems not subject to Russian currency regulation laws and employing an experimental platform. Additionally, the bill mandates miners to report all transactions to the Russian Federal Tax Service.
If it becomes law, it could allow Russia to convert its energy resources into mined crypto and sell it, thereby bolstering its finances and circumventing sanctions imposed over its invasion of Ukraine. If successful, this model could reshape geopolitics and encourage wider crypto adoption to evade international sanctions regimes like those set by the U.S. Treasury’s Office of Foreign Assets Control (OFAC).