Russia’s State Duma has taken a significant step towards regulating cryptocurrency mining by advancing a bill designed to curb illegal activities and promote investment and employment. The bill, proposed by Anatoly Aksakov, chairman of the Duma Committee on Financial Markets, and supported by key deputies, mandates strict guidelines for miners, including registration and government oversight. If passed, the law will take effect on September 1.
Crypto Mining Bill Clears First Hurdle in Russia
On July 24, the State Duma, the lower house of the Federal Assembly of Russia, approved the bill in its first reading. Introduced by a coalition of deputies led by Anatoly Aksakov, the legislation aims to formalize the process and conditions for mining digital currencies in Russia.
Proponents of the bill argue that such regulation will mitigate risks associated with illegal mining activities and enhance legal clarity. This, in turn, is expected to attract investment and generate employment in the sector. Nikita Chaplin, a member of the State Duma’s Budget and Taxes Committee, told journalists:
“The bill helps reduce the risks of illegal mining activities and related offenses. The established requirements and controls make it more difficult to circumvent the law and use digital currencies in illegal transactions.”
Chaplin emphasized that regulating mining at the legislative level can stimulate industry development, attract investment, and create new jobs. He noted that last year, Russian miners produced approximately 54,000 bitcoins, valued at over $3.5 billion.
Strict Guidelines and Oversight
The proposed law sets strict guidelines for individuals and entities involved in cryptocurrency mining, with oversight from the Ministry of Digital Development. Registered Russian legal entities and individual entrepreneurs will be permitted to mine legally. Non-registered Russian citizens can also mine if they comply with specified energy consumption limits. Additionally, the legislation requires miners to disclose information about the obtained digital currency and related transaction identifiers to the government. The Federal Service for Financial Monitoring (Rosfinmonitoring) will maintain a list of suspicious address identifiers to combat money laundering and terrorist financing.
Legislative Process and Future Implications
The bill must go through two more readings before it can be fully adopted into law. During these readings, amendments may be introduced and discussed before a final vote is taken. If enacted, the law will come into effect on September 1, shaping the future landscape of cryptocurrency mining in Russia.
This move by the State Duma represents a significant effort to regulate the burgeoning cryptocurrency mining industry within the country. By establishing clear legal frameworks and stringent oversight, Russia aims to foster a safer and more attractive environment for investment while clamping down on illegal activities associated with digital currencies.
