Crypto Export Initiative for Russian Miners: Proposed Bill Targets 2024 Implementation

Crypto Export Initiative for Russian Miners: Proposed Bill Targets 2024 Implementation

Crypto News – In Russia, a groundbreaking bill is in the works, poised to revolutionize the cryptocurrency landscape for miners. This ambitious legislation, slated for potential implementation in 2024, is set to enable the export of cryptocurrencies mined within the nation, akin to its natural gas export model.

At the heart of this initiative is the Russian Ministry of Finance, which has been actively contemplating the exportation of digital currencies as a product of mining activities. The proposed framework aims to mirror the established legislative processes governing natural gas exports.

A pivotal discussion spearheaded by Ivan Chebeskov, the Deputy Minister of Finance, highlighted the prospects for Russian miners. At a roundtable titled “Cryptocurrency and the Future of Digital Finance,” Chebeskov, in conversation with Russian media outlet RBC, detailed the concept: “We envision a system where cryptocurrency, as a by-product of mining activities, can be exported. Drawing inspiration from our gas export laws, we’ve developed a proposal enabling miners to sell their mined cryptocurrencies as export products.”

Russia’s abundant resources and lower electricity costs have made it a haven for cryptocurrency miners. Chebeskov underscored the consensus between the Ministry of Finance and the Bank of Russia on recognizing cryptocurrency mining as a legitimate industry. Further, there’s an emphasis on assessing the viability of using digital currencies in international economic transactions, marking a shift towards more experimental approaches.

In a notable legislative move, a bill was introduced to the State Duma in November 2022, aiming to legalize cryptocurrency mining. This legislation delineates the process for miners to sell their digital currency, encompassing stringent rules on advertising and digital currency offerings.

Interestingly, the bill proposes that mined cryptocurrencies can be sold on international platforms, bypassing the use of Russian information infrastructure. Miners are presented with two avenues: they can either procure cryptocurrencies through global systems in compliance with international norms or via a dedicated platform, part of an experimental project.

In both scenarios, miners are mandated to report their cryptocurrency sales transactions to the Federal Tax Service. The Central Bank has stipulated that the sale of mined cryptocurrencies must exclusively occur through foreign information infrastructure and is restricted to non-residents.

Adding to the discourse, Anatoly Aksakov, head of the State Duma Committee on the Financial Market, hinted in the summer of 2023 at the potential enactment of a comprehensive bill governing cryptocurrency mining by 2024. The progression of the bill past its initial reading underscores the ongoing efforts to refine this landmark legislation.

Post-Ukraine invasion sanctions have seen Russia oscillating in its stance on cryptocurrency policy. While significant strides are being made in legalizing cryptocurrency mining, the nation remains undecided on legalizing cryptocurrency usage.