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Russian Finance Ministry Amends Bill On Digital Currency – Adds Crypto Mining Provisions

Russian Finance Ministry Amends Bill On Digital Currency – The Russian Federation’s Ministry of Finance has changed a draft law aimed at regulating the country’s crypto ecosystem, including regulations for cryptocurrency mining. The law has been resubmitted to the government and could be passed at the spring session of parliament.

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A law aiming to set comprehensive rules for the Russian cryptocurrency sector has been modified by Russia’s Ministry of Finance. The most recent version now incorporates other government institutions’ opinions on the issue, according to the department’s announcement last Friday.

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The draft law “On Digital Currency,” which has been finalized, has been returned to Moscow’s cabinet of ministers. The bill, which was first introduced to the Russian government in February, proposes to control crypto transactions as well as the operations of crypto market participants in the country. It was created to fill up the regulatory loopholes left after the passage of the Digital Financial Assets Act.

The new rule, together with revisions to the Russian Tax Code relating to cryptocurrency operations, is expected to be implemented during the State Duma’s spring session, according to Anatoly Aksakov, chair of the Financial Market Committee in the lower house of Russian parliament.

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The bill’s rules on crypto mining regulation, for example, have been clarified, according to the Finance Ministry. While the usage of bitcoin in payments has been met with criticism, most notably from Russia’s Central Bank and, more recently, Prime Minister Mikhail Mishustin, and most Russian politicians have embraced the concept of mining being recognized as a legitimate economic activity.

The Bank of Russia proposed a blanket ban on a variety of crypto-related activities, including mining, in January, but the Russian government agreed with Minfin that the industry should be regulated instead of being restricted. President Vladimir Putin urged them to work out their differences and highlighted Russia’s mining potential.

Also Read: Namibian Central Bank Announces Plan to Launch CBDC

The Ministry of Economic Development recommended in February to allow the extraction of digital currencies in areas where there is a surplus of electricity and to offer miners reasonable electricity rates.

The Ministry of Energy called for the immediate legalization of bitcoin mining and the implementation of regional energy quotas for bitcoin farms in late March.

The Ministry of Industry and Trade, as well as the Ministry of Construction, Utilities, and Housing proposed an experimental legislative regime for mining.

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