Regulation
Russian Duma Approves Bill to Legalize Bitcoin Mining and Cryptocurrency Payments
According to a recent report, the Russian State Duma has approved a bill to legalize Bitcoin mining and cryptocurrency payments. The move, which passed in the first reading, paves the way for a regulated digital currency mining industry. The bill aims to curb illegal activities, attract investment, and create jobs, marking a significant shift in the country’s approach to cryptocurrencies.
Russian Duma 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 MiningAccording to the RIA Novosti report, the aim is to reduce illegal mining and related crimes by implementing strict controls.
Second Nikita Chaplinmember of the Budget and Taxes Committee, the rule will make it harder to use digital currencies for illegal transactions. He also noted that miners mined about 54,000 bitcoins worth more than $3.5 billion last year.
Meanwhile, the draft law outlines requirements for individuals and legal entities involved in digital currency mining. The government, in agreement with the Bank of Russia, will establish these standards. Additionally, the Ministry of Digital Development will oversee compliance, ensuring that mining activities adhere to the established rules.
However, the government can also ban cryptocurrency mining in specific regions if necessary, the report notes. Only registered legal entities and individual entrepreneurs can carry out mining activities in the country. However, citizens who are not entrepreneurs can carry out mining activities without registration if they stay within the energy consumption limits set by the Council of Ministers.
The procedure for maintaining this register will be detailed in a government regulatory act. In addition, legal entities and entrepreneurs are prohibited from combining mining with electricity-related activities. This separation is intended to prevent conflicts of interest and ensure fair play in the energy market.
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Focus on regulation and compliance
The bill requires miners to report the digital currency obtained through mining and the address identifiers used for transactions. This information will be provided to a government-authorized entity. Additionally, Rosfinmonitoring will compile a list of suspicious cryptocurrency addresses to help Anti-Money Laundering (AML) efforts and prevent the financing of terrorism.
Meanwhile, the bill will also allow the sale of digital currency mined without using Russian information infrastructure. However, it prohibits the circulation of digital currency within Russia, except for mining and distribution within mining pools. Additionally, advertising or offering cryptocurrencies to the public is also prohibited, along with the promotion of goods and services related to the issuance of digital currency.
If promulgated, the law will enter into force on September 1, 2024. This provision represents a significant change in Russia’s position on cryptocurrency panorama, with the aim of promoting a controlled and legal digital money market.
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