Regulation
Russian Federation discusses regulations to accommodate cryptocurrencies
- MP Anatoly Aksakov introduced a bill to regulate and support cryptocurrency mining
- The bill provides for mining activity for registered Russian companies, individual entrepreneurs and private individuals within the energy limits
- US Treasury Secretary Janet Yellen and US Representative Brad Sherman are concerned and have warned that it could help Russia circumvent sanctions
While Germany is selling all its Bitcoin, which has the potential to diversify risk and reduce dependence on the dollar, Russia seems to recognize this potential and may want to take advantage of it together with China.
Nothing has been approved yet, but there is an initiative to introduce regulation to support cryptocurrency mining.
What exactly is happening?
The State Duma of the Russian Federation, represented by MP Anatoly Aksakov, has proposed a bill to remove cryptocurrency mining from the gray zone.
The bill aims to establish conditions for cryptocurrency mining within energy limits for registered Russian companies, individual entrepreneurs and private individuals.
These individuals will also be required to submit reports, including address identifiers, and to ensure that they do not link cryptocurrency mining to energy activities.
Compliance with these conditions, if approved, will be the responsibility of the Ministry of Digital Development.
US Treasury Secretary Janet Yellen is concerned about Russia’s cryptocurrency initiatives, and US Representative Brad Sherman explicitly warns that this could be a way around sanctions.
What could it mean?
Well, in this cycle, we see cryptocurrencies going far beyond investments. Regardless of the tragic events and the nature of the actions of the various parties, the true value of cryptocurrencies as a decentralized financial instrument is starting to become more evident.