Russian lawmakers have proposed changes to the current law “On Digital Financial Assets” in order to regulate crypto mining while banning the circulation of cryptocurrencies in the country. The legislation also prohibits the non-targeted advertising of crypto-related products and services.
New Attempt to Legalize Cryptocurrency Mining in Russia
After months of deliberations, efforts continue in Moscow to establish a more comprehensive regulatory framework for cryptocurrencies. The latest initiative in that direction comes from a group of high-profile deputies from the lower house of parliament, the State Duma, including the head of the Financial Market Committee, Anatoly Aksakov.
The lawmakers have filed a bill amending the law “On Digital Financial Assets,” in force since January of 2021. The draft is meant to regulate the extraction of cryptocurrencies as well as the taxation of the generated income. It permits the sale of the minted coins “without using Russian information infrastructure” or through authorized entities operating “within experimental legal regimes.”
The document introduces a detailed definition of crypto mining which makes reference to the use of computing equipment and distributed ledger technology. It also describes mining pools and obliges miners to share information with the state in accordance with the tax legislation of the Russian Federation.
Under the proposed provisions, crypto mining activities will be overseen by a special government-appointed body. The executive power will also determine the requirements for legal entities or individual entrepreneurs that want to get involved in the industry in coordination with the Central Bank of Russia.
Bill Sponsors Seek to Prevent Wide Offering of Crypto Services
If adopted, the new legislation will prohibit the advertising or other forms of promoting crypto assets to unlimited audience. The ban refers to wide, non-targeted advertising of products and services linked to the issuance and circulation of cryptocurrencies like bitcoin, with the exception of mining.
According to the Russian crypto news outlet Bits.media, this means that any commercial crypto activities, like those of exchanges, for example, would be outside the law, while peer-to-peer exchange should be allowed.
Forklog noted in a report that previously introduced restrictions concern only the dissemination of information on the offering and acceptance of digital currencies as a means of payment. Another mining bill submitted to the Duma in late October permits their use in cross-border payments amid sanctions.
The latest piece of legislation is expected to be adopted in December and enter into force on Jan. 1, 2023, Anatoly Aksakov announced. Earlier in November, he revealed that Russian authorities plan to “allow the mining of any cryptocurrency.”
Do you think Russia will legalize crypto mining in the coming weeks? Tell us in the comments section below.
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Author: Lubomir Tassev