Regulation
Russian Lawmakers Approve Bill Legalizing Bitcoin Mining, Cryptocurrency Payments for International Trade
The Russian State Duma has passed a law legalizing Bitcoin mining and authorizing the use of cryptocurrencies for international trade.
The bill, which was introduced for the first time a few years ago, it should come into force on September 1st, pending final approval by the federation.
According to local reports, the session’s vote count was conclusive, with 404 votes in favor, representing 89.8% of the total. No members voted against or abstained from voting.
The new legislation is designed to address challenges faced by Russian banks due to regulatory constraints and international sanctions. Sanctions have significantly disrupted Russia’s business relations with key partners, including China, India, the United Arab Emirates and Turkey, as local banks have become increasingly cautious under Western pressure.
Mining Regulation
The law establishes a regulatory framework to supervise cryptocurrency mining activities, ensure compliance with tax regulations, and prevent illicit operations. A key feature of the bill is the authorization of Bitcoin mining.
Drafted by MP Anatoly Aksakov and other lawmakers, the legislation requires mining to be regulated by the government and the Bank of Russia, with a federal authority to ensure compliance. The initiative aims to bring mining out of the shadows and ensure that income is declared and taxes are paid.
In addition to regulating mining, the bill allows the sale of cryptocurrencies mined without using Russian information infrastructure, exempting these transactions from the laws regulating the national currency. However, the use of cryptocurrencies for domestic payments remains prohibited in Russia.
The law also includes a ban on advertising for cryptocurrencies, in order to control the spread of the use of digital currency within the country.
Growing acceptance
While cryptocurrencies remain banned for domestic payments, the bill marks a notable shift in Russia’s approach to digital currencies and assets. The legislation aims to improve Russia’s trade relations and challenge global regulatory norms.
Russia is also considering the official Legalization of Stablecoins for international transactions to simplify cross-border payments for Russian companies amid ongoing sanctions. The central band is actively discussing proposals to allow the use of these crypto-assets, which are pegged to stable currencies or assets such as the US dollar or gold, making them less volatile than other cryptocurrencies.
Meanwhile, the Russian Finance Ministry recently proposed allowing traditional exchanges to operate digital asset trading for select investors. A draft government response outlined the possibility of creating special regulations for “conducting organized trading in digital currency, recognized as a commodity, on the basis of an exchange license or a trading system license.”