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Saturday, February 4, 2023

Bill Regulating Crypto Mining Submitted to Russian Parliament

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Bill Regulating Crypto Mining Submitted to Russian Parliament – The State Duma, Russia’s lower house of parliament, has received a draft law to regulate cryptocurrency mining. The law establishes a legal definition for the extraction of digital currency and calls for the creation of a miners’ registry.

According to the house’s website, the draft of a new federal law “On Mining in the Russian Federation” was submitted to the Duma on Friday, April 29. The measure intends to lift the crypto-related business out of the grey economy in Russia, a country with abundant energy resources and ideal mining weather.

Also Read: Global Investment Bank Goldman Sachs Offers Its First Bitcoin-Backed Loan

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The bill’s authors define digital coin minting as an activity that involves the use of Russian Federation-based information infrastructure and equipment to create digital currency. They also offer legal definitions for digital currency circulation, mining pools, and mining facility operators.

The bill calls for the formation of a separate register for cryptocurrency miners, which will be kept by a federal agency with authority. If their electricity use surpasses specific government-set restrictions, private bitcoin miners will be able to register as self-employed individuals or individual entrepreneurs.

Mining will be restricted to registered businesses and individuals, according to RBC Crypto, which cited the document. Mining facility operators in Russia will be obliged to maintain track of the generated cryptocurrencies, their types, any contracts with other businesses and buyers of the coins, as well as exchange operators, payment systems, and banks.

If the law is passed by the Duma, registered miners will be granted a one-year amnesty during which they will be able to resolve any lingering issues with customs clearance for imported hardware, pay applicable taxes, and comply with applicable rules. This covers the recently enacted laws for money transfers outside of Russia.

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The Russian government has been working on a comprehensive cryptocurrency regulation framework. The Finance Ministry has produced a bill “On Digital Currency” to bridge the legal voids left by the implementation of the law “On Digital Financial Assets” last year.

The draft was recently changed by the department to explain some aspects of crypto mining. During its spring session, the Russian parliament is likely to pass this law, as well as tax reforms.

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