The legalization of cryptocurrency mining is supported by the Russian central bank, but only provided miners sell their currencies to non-Russian citizens.
Russia’s stance on crypto
The Russian central bank continues to take a very unfavorable position against cryptocurrencies and has suggested that local miners be prohibited from selling coins to locals. A draft law unveiled in mid-November 2022 had support from the Bank of Russia for allowing cryptocurrency mining in the country. However, the Russian central bank intends to restrict cryptocurrency sales by miners to overseas exchanges and non-Russian citizens, according to a Dec. 7 article from the regional news outlet Interfax. (1)
“We think that cryptocurrency produced through mining may only be sold to non-residents and entirely through foreign infrastructure”, according to the Bank of Russia’s press office.
They believe digital money cannot be circulated on Russian Federation territory.
As many international cryptocurrency exchanges have prohibited Russians from utilizing their platforms in line with sanctions over Russia’s war in Ukraine, the new idea is likely to raise a lot of worries among Russian miners. The Bank of Russia has long advocated limiting resident trading to international trading platforms. The Bank of Russia has proposed that miners who wish to sell self-mined cryptocurrency within Russia do so through an “approved entity.”
What led up to this announcement?
The announcement follows the Russian Ministry of Finance’s rejection of the Bank of Russia’s plan to impose rigorous licensing requirements on cryptocurrency mining companies there. On December 6, Alexey Moiseev, the deputy finance minister, allegedly stated that the Russian central bank had established a new strategy to restrict mining to “approved firms.” The official claimed that such a policy would effectively result in the “complete licensing” of cryptocurrency mining. According to reports (2), Moiseev said, “We are against it.” As previously reported, on November 17, the lower house of the Russian parliament received a draft bill on cryptocurrency mining. The bill’s initial draft did not include prohibiting selling cryptocurrency mined by Russian citizens.
Additionally, the legislation prohibits miners from selling their coins elsewhere through the state-backed platform established inside the experimental legal framework for cryptocurrencies or on international exchanges. The most recent announcement is yet another twist in the lengthy debate over cryptocurrency regulation between the crypto-unfriendly Ministry of Finance and the Russian central bank. Arguments throughout the years have only made it so that Russian people and residents still don’t have a clear cryptocurrency framework, even if local cryptocurrency use is continually rising.
Along with the government’s plan to legalize cryptocurrency for cross-border payments for imports, Russia’s law on crypto mining is one of the most eagerly awaited legislative measures in the nation (3). Anatoly Aksakov, the chair of the lower house’s financial committee in Russia, claims By February 2023, it is anticipated that parliament will have enacted the relevant adjustments.
