8.2 C
Monday, March 27, 2023

Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad

Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad – Moscow’s monetary authority is now prepared to support the legality of cryptocurrency mining, provided that Russian miners are required to sell the coins they obtain abroad. Kirill Pronin, the head of the Bank of Russia’s Financial Technologies Department, recently made a statement to that effect.

- Advertisement -

The central bank, which earlier this year proposed a blanket ban on the majority of associated activity, including mining, has been the most vocal critic of cryptocurrencies in Russia’s ongoing policy debates. 

The government’s position has begun to shift, however, as a result of opposition from other institutions and financial restrictions brought on by the conflict in Ukraine.

People Also Read: EU Makes Deal on MiCA Legislation to Regulate Crypto Markets

Last month, Governor Elvira Nabiullina said that cryptocurrency payments may be accepted as long as they didn’t penetrate the Russian financial system. She also said that because digital currencies like bitcoin are so unstable and risky for potential investors, they shouldn’t be exchanged on Russian platforms.

- Advertisement -

Speaking this week at the St. Petersburg International Legal Forum, Pronin emphasized that mining is one way to obtain cryptocurrency in the form of fees for the confirmation of crypto transactions carried out by miners, even if it would not be under the control of the Central Bank of Russia. He was quoted as saying, “The legalization of mining can be addressed, but in our opinion a number of requirements must be met in this regard.”

Ivan Chebeskov, the director of the Financial Policy Department of the ministry of finance, emphasized that several significant crypto mining businesses with offices in the Russian Federation have also been compelled to deal with foreign restrictions while withdrawing funds. He proposed that in order to give liquidity to the industry, Russia could need to build its own exchange infrastructure.

However, Kirill Pronin reaffirmed that, in accordance with the CBR, the cryptocurrency minted by Russian miners should be sold outside of Russia and not be permitted to accumulate there. Avoiding incentives for its eventual use in domestic payments is the goal.

People Also Read: Ethereum Transfer Costs Continue to Slide — Network Fees Tap a 19-Month Low

A separate draft law “On Mining in the Russian Federation” was presented to the State Duma in April, in addition to the new bill “On Digital Currency,” which is anticipated to thoroughly govern Russia’s crypto space. 

The lower chamber of the Russian parliament is considering a proposal to recognize cryptocurrency mining as a commercial endeavor utilizing Russian information infrastructure and equipment located in the country.

- Advertisement -

More From Evoclique