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Bank of Russia is ready to legalize crypto mining if miners sell minted coins abroad – Mining Bitcoin News
Russia’s central bank will agree to legalize the mining of cryptocurrencies, provided that the proceeds from the activity are converted to fiat outside Russia. The regulator’s last position in the case comes after it has softened its stance on the possible use of cryptocurrencies for payments, even if it is only internationally.
Russia’s central bank accepts legalization of cryptocurrency mining
The monetary authority in Moscow is now ready to support the legalization of crypto mining, provided that Russian miners are obliged to sell the coins they obtain in the process outside the country. This is according to a recent statement from Kirill Pronin, head of the Bank of Russia’s financial technology department.
The central bank has been the hard voice in the ongoing discussions about the future of cryptocurrencies in Russia, and proposes a general ban on most related activities earlier this year, including mining. However, due to opposition from other government institutions and they have to deal with economic restrictions imposed over the war in Ukraine, the position has begun to change.
Governor Elvira Nabiullina indicated last month that cryptocurrencies could be allowed if they did not “penetrate” the Russian financial system. At the same time, she insisted that digital currencies such as bitcoin should not be traded on Russian platforms because these assets are too volatile and risky for potential investors.
Speaking at the St. Petersburg International Legal Forum this week, Pronin noted that although mining will not fall under the responsibility of the Central Bank of Russia (CBR), it is one of the ways to obtain cryptocurrency, in the form of fees for validation of cryptocurrencies performed of miners. “Legalization of mining can be discussed, but a number of conditions, in our opinion, must be met in this regard,” he told Interfax.
Ivan Chebeskov, director of the Ministry of Finance’s fiscal policy department, pointed out that some large crypto-mining companies based in the Russian Federation have also been forced to deal with foreign restrictions when withdrawing funds. He suggested that Russia may need to build its own stock exchange infrastructure to provide liquidity to the industry.
However, Kirill Pronin reiterated that according to the CBR, the cryptocurrency of the miners in Russia should be sold outside the country’s borders and not allowed to gather in the country. The point is to avoid creating incentives for later use in domestic payments.
In addition to the new bill “On Digital Currency”, which is expected to regulate Russia’s cryptocurrencies extensively, a dedicated bill “On Mining in the Russian Federation” was sent to the State Duma in April. Members of the lower house of the Russian parliament propose to recognize crypto-mining as a business activity that uses Russian information infrastructure and equipment located in the country.
Do you expect Russia to legalize cryptocurrency mining this year? Tell us in the comments section below.
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