Russia Bitcoin Mining Bill Progresses, Awaits State Duma Vote in Late July
The State Duma in Russia is set to vote on a bill that would legalize cryptocurrency mining in the country. The proposal includes provisions that would require miners to disclose their mining activities and adhere to anti-money laundering regulations. This move is aimed at bringing clarity to the currently ambiguous legal status of crypto mining in Russia.
Introduced by Russian Deputy Anatoly Aksakov, the bill aims to establish a structured legal framework for cryptocurrency mining in Russia. The legislation would provide clear guidelines for both individuals and legal entities involved in mining activities, ensuring compliance with government-defined requirements. The Ministry of Digital Development would oversee the enforcement of these regulations.
Under the proposed law, only registered Russian companies and individual entrepreneurs would be permitted to engage in cryptocurrency mining. Private individuals would be allowed to mine within specified energy consumption limits. The government would maintain a registry of authorized miners through established procedures.
Additionally, the bill includes measures to regulate the circulation of digital currencies to prevent their misuse for illicit activities such as money laundering and terrorism financing. The government would have the authority to restrict mining activities in certain regions. The legislation also prohibits cryptocurrency advertising and circulation, requiring miners to report their activities and provide address identifiers to the relevant government agency. Combining mining operations with electric power-related activities would be prohibited.
Russia’s efforts to regulate cryptocurrency come amidst ongoing sanctions following the Ukraine invasion. The country is exploring ways to enhance its international payment capabilities and reduce dependence on Western financial systems. The proposed bill represents a step towards formalizing and overseeing cryptocurrency mining activities in Russia, ensuring compliance with legal and regulatory standards.
