Bank of Russia, Ministry of Finance Agree on Regulation of Crypto Mining, Law Expected Soon – Mining Bitcoin News

Major government institutions in Moscow, the Central Bank and the Ministry of Finance, have coordinated their positions on the regulation of cryptocurrency mining in the Russian Federation. The respective bill will soon be submitted to the State Duma, a senior member of the house was unveiled.

Financial authorities reach consensus on how to regulate the mining of digital coins in Russia

The Central Bank of Russia (CBR) and the Ministry of Finance (Minfin) have adopted a joint position on the regulation of cryptomining. Bitcoin-related activity has expanded in the energy-rich nation, both as a profitable industry and as a source of additional income for many Russians.

Anatoly Aksakov, head of the parliamentary financial market committee, announced during the Kazan Digital Week forum that draft laws introducing regulations for the sector will soon be sent to the lower house of the Russian parliament, the State Duma. Quoted by RBC Crypto, he said:

In the near future, the bill will appear in the State Duma, we will work to send it faster.

The Russian legislator also gave his own view on the matter. Aksakov believes that cryptocurrency mining should only be allowed in regions with abundant energy resources and prohibited in those experiencing shortages.

Earlier in September, Prime Minister Mikhail Mishustin asked the CBR, Ministry of Finance, Rosfinmonitoring, Russia’s financial watchdog, the Federal Tax Service and the Federal Security Service to prepare a joint position on draft federal laws regulating the issuance and circulation of digital currencies, including their mining and use in international settlements.

The head of the Russian government also ordered the Ministry of Finance, with the participation of the Bank of Russia, to submit consensus proposals for the development of the market for digital financial assets (DFA), including the application of decentralized technologies, by December. 1.

The two regulators will have to update the strategy for the development of the Russian financial market until 2030. The document should be revised taking into account President Vladimir Putin’s instructions and the current geopolitical situation, Mishustin said on September 13. He also emphasized that according to in the current conditions, the employment of DFAs will help to ensure uninterrupted payment for imports and exports.

Russian authorities have been debating the regulation of cryptocurrencies and related activities for quite some time, with CBR and Minfin taking almost opposite positions until recently. While the central bank proposed a general ban, the department has advocated legalization. However, the two regulators recently agreed that Russia would need cross-border crypto payments to deal with pressure from Western restrictions on foreign trade.

The majority of officials in Moscow also share the opinion that the Russian Federation should exploit its competitive advantages in cryptomining, which was also highlighted by the Russian president. Many regions in the large country offer both low-cost energy and a cool climate. At the same time, Russian crypto miners have also been hit by sanctions imposed due to Moscow’s invasion of Ukraine.

Do you think Russia will legalize other crypto-related activities besides mining? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.