Russia might finally be on the brink of legalizing Bitcoin (BTC) and altcoin mining. A State Duma committee has approved a bill for a vote, which is expected later this month.
TASS reported that the State Duma’s Committee on Financial Markets recommended that the lower house of parliament vote in favor of the new bill. This bill aims to regulate mining activities in Russia and will be discussed on July 23.
Russia Crypto Mining Bill: Progress at Long Last?
The bill is the result of efforts by a group of lawmakers from various factions. Notably, Anatoly Aksakov, the chairman of the State Duma Committee on Financial Markets, is one of the signatories. Aksakov, a key figure in Russia’s crypto legislation, is unlikely to support a bill with no chance of success. This bill is the culmination of months of lobbying by the Russian industrial crypto mining sector, which has been pushing for legalization. While this move means miners would start paying taxes, it also opens doors for potential investors. Currently, mining operates in a legal “grey zone,” where it is neither legal nor illegal. Power companies can shut down miners suspected of stealing electricity.
The first version of the bill was circulated in November 2022. The latest version proposes giving regulatory powers to both the Russian government and the Central Bank. It also suggests that the Ministry of Digital Development monitor the implementation of new requirements by miners.
Small-Scale Miners May Benefit
The bill might also be beneficial for home-based and smaller-scale miners. It stipulates that individuals who do not exceed established energy consumption limits can mine digital currencies without needing to register. Previous drafts had proposed a total ban on private mining and allowed power providers to target home-based miners.
Miners Would Have to Abide by AML Protocols Under Draft Law
If passed, the bill would require miners to report their crypto mining activities and disclose the addresses where the mined crypto is stored. Rosfinmonitoring, Russia’s anti-money laundering agency, would create a list of suspicious addresses associated with money laundering and terrorist financing. The bill also addresses concerns raised by the Ministry of Energy and power companies, proposing that the government be allowed to ban mining in certain parts of the country.
Ministry Wants More Crypto Regulation
The Ministry of Finance has created its own response, suggesting limitations on crypto exchange access to professional investors. The ministry also aims to expedite crypto laws to aid Russian firms in global business, as Western sanctions have hindered many companies. Moscow views crypto as a potential workaround, following examples set by countries like Iran and Venezuela. The ministry wants to permit all participants in foreign economic activity to make settlements in digital currencies.
Industry officials estimate that 90% of Russian crypto miners focus on BTC, with a smaller percentage mining altcoins like Litecoin (LTC). News of the bill’s progress brings relief to many miners, especially after Aksakov’s March statement that crypto regulation might be delayed until 2025.
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