Russian Finance Ministry adds crypto mining provisions to the new bill

Russian Finance Ministry adds crypto mining provisions to the new bill

Russia’s Ministry of Finance has recently revised a bill – which considers the take of different government institutions on digital currency - encompassing comprehensive set of rules catering to the Russian cryptocurrency sector.

Reportedly, the finalized bill “On Digital currency” has been sent to the cabinet of ministers in Moscow following the initial submission to the federal government in February.

The primary goal of the legislation is to regulate crypto transactions in the country along with other activities led by crypto market players, filling the regulatory gaps that remained after the law “On Digital Financial Assets” was adopted.

Speaking on the new law, Anatoly Aksakov, Chair of the Financial Market Committee, a member of Russian parliament’s lower house, stated that the new bill is to be implemented during the State Duma’s spring session.

In the meantime, the newly established amendments structuring the Russian Tax Code for cryptocurrency operations will be adopted parallelly.

According to the Finance Ministry, a bunch of provisions such as those regarding crypto mining regulation has been clarified.

Despite the opposition from the Central Bank of Russia and Prime Minister Mikhail Mishustin in the recent times, bitcoin in payments has received significant support from Russian officials betting on the potential of mining as an economic activity.

In early 2022, the Russian government disregarded the proposition of the Bank of Russia for a blanket ban on a broad range of crypto-based activities like mining and instead favored Minfin’s preferences for regulating the industry rather than restricting it.

Amidst the conflicting views, President Vladimir Putin asked the two parties to resolve differences and promoted Russia’s potential to emerge as a mining hub. 

Starting with February, the Ministry of Economic Development vouched for authorization of extraction of digital currencies in Russia with acceptable electricity rates for miners, followed by the Ministry of Energy prompting for urgent legalization of bitcoin mining in March.

More recently, the Ministry of Industry and Trade proposed the implementation of a pilot legal regime for mining siding with the Ministry of Construction, Housing & Utilities.

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