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The Russian crypto industry is pushing for the legalization of mining through a draft bill they created with business leaders.
Alexander Brazhnikov, Executive Director of RACIB, spoke at a crypto event about the bill and expects significant changes to the industry by 2024. He advised proposing mining regulations to regulators.
Russian Crypto Bill story Began in 2022
In April 2022, Russia’s Ministry of Finance amended a bill to establish comprehensive regulations for the country’s cryptocurrency sector. The new law was expected to pass during the State Duma’s spring session, along with changes to the Russian Tax Code regarding cryptocurrency operations. Moreover, the revised legislation aimed to legalize cryptocurrencies and regulate crypto investments and the market.
Russian Crypto Leaders are Pushing a Bill
Russian cryptocurrency industry leaders are collaborating with business executives to draft a preliminary bill that may potentially legalize the thriving mining sector in Russia. RACIB has sent letters to ministries proposing the development of crypto mining and the crypto-economy in Russia.
Draft regulation proposals have been sent to the Ministry of Energy and the Ministry of Economic Development, and the RACIB chief will also send the draft bill to Rosfinmonitoring, the nation’s anti-money laundering agency.
Industry leaders have advocated for legalizing their business operations for years, and they are hopeful that this latest bid could succeed where others have failed. The RACIB bill has already gained support from State Duma lawmakers Anton Tkachev, Vladimir Plyakin, Grigory Shilkin, and Sardana Avksentyeva.
What’s in the Bill?
The bill claims that, according to “expert estimates,” Russian citizens have opened over 12 million cryptocurrency wallets. Moreover, they currently hold a combined total of $108 billion worth of coins in crypto wallets.
The bill’s authors noted that “all transactions” with crypto are currently carried out in an unregulated zone. It means that people who want to conduct legitimate business operations with crypto risk criminal prosecution.
Although a bill reached the floor of the Duma in 2022, it was abandoned after its first reading. Undeterred, RACIB created a working group on November 20, 2023, to work on crypto mining policy.
The group includes representatives from government agencies, energy industry insiders, and senior members of the Russian mining community. Furthermore, the same group drafted a bill that first emerged on March 4, 2024. These were sent to the Minister of Economic Development of the Russian Federation, Maxim Reshetnikov.
Miners are Investing $4 Billion?
Miners are prepared to invest $4 billion in new multi-purpose data centers and are already building new facilities in the Russian South. The miners’ primary objective is to secure an official classification for mining as a “form of economic activity.”
It would allow the Russian state to begin taxing crypto miners while ensuring a secure future for companies trying to expand their operations in the country. The Russian crypto industry is also pushing for Moscow to “create an experimental legal sandbox” for the “centralized conversion of digital assets obtained as a result of mining.”
Some lawmakers are still interested in creating a “state-run” crypto exchange for miners that could serve Russian firms that use crypto as a payment tool in cross-border trade. The independent financial advisor Elena Savina was quoted as saying there was still a chance that the bill could be ignored. Moscow is currently fast-tracking its CBDC project, and it may not look favorably upon efforts to legitimize the crypto sector.
Summary
Russian cryptocurrency leaders are partnering with business executives to create a bill that could legalize Russia’s mining sector. Miners are prepared to invest $4 billion in new data centers and want mining to be recognized as a form of economic activity.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
