Russia advances new crypto mining bill – Here’s everything to know!

• Russia crypto mining bill is now set for parliament.
• The laws will require crypto miners to register and disclose amount they mine.

After delays from the State Duma, the Russian crypto mining bill is finally set for Parliament. Since May, Russian lawmakers have created legal frameworks to regulate crypto mining and other crypto-related activities within the country.

Thus, after a long wait, the State Duma, through the financial markets committee, has asked the lower house to vote on the bill on 25th July.

Russia’s crypto mining bill

Russia’s Parliament is set to debate and pass the new crypto mining bill later this month. According to the bill, the organization of crypto circulation will be outlawed from 1st September, only allowing registered miners and projects from the central bank.

Further, only Russian-owned companies and citizens included in a special register for crypto projects will mine cryptocurrencies.

Equally, private individuals can mine without registering if they adhere to the set guidelines on energy usage according to the government’s standards.

Also, the bill will outlaw advertisements for digital assets and the organization of their crypto circulation in the country. These laws are set to discourage individuals from mining activities.

Increased crypto regulation

Crypto mining in Russia, like most countries, lacks a legal framework and exists under the radar.

However, the new bill aims to eliminate legal loopholes in the crypto-mining sector. The law will now help various Russian businesses conduct global operations.

Essentially, these regulations will provide the Ministry of Digital Development the authority to monitor how miners adhere to the set rules and standards.

Therefore, the state will have total regulation on activities that miners conduct.

Bill tightens control for crypto miners

In accordance with the new bill, all crypto miners in Russia must report to the authorities the amount of crypto they mine.

Additionally, miners must provide the authorities with the crypto addresses in which these tokens are stored. According to Russian lawmakers, the move is essential to avoid money laundering, sponsoring terrorism, and other illegal activities.

Equally, the law allows the authorities to outlaw crypto mining in specific areas with concerns from the energy ministry. The Ministry of Finance further hopes the new law ensures crypto activities are left to a group of professionals.

Implication on economy amid western sanctions

Since the Russian invasion of Ukraine, its financial systems and economy have faced massive sanctions. These sanctions have affected individuals’ ability to trade and operate with foreign currencies.

However, Cryptocurrencies have acted as savior for many individual traders and investors. Therefore, through the bill, the state will attempt to bypass these sanctions by leveraging the decentralized financial ecosystems.

Source: Statista