Russia Plans to Legalize Crypto Mining by 2024, Promoting Cross-Border Transactions and Economic Growth
According to Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Market, crypto mining could become legal in Russia as early as 2024. Aksakov made this statement during the 2023 St Petersburg International Economic Forum, where he emphasized the potential of mining in the Russian economy.
The first reading of four bills aimed at legalizing crypto mining is scheduled for July, with the State Duma expected to adopt the bills. These proposed regulations will cover various aspects such as mining rules, taxation of miners, and penalties for illegal mining activities.
The Russian Ministry of Finance estimates that the country’s miners generate around $4 billion worth of cryptocurrencies, resulting in approximately $1.2 billion in profits. Russia has become a major player in the global mining industry and boasts the second-largest mining power worldwide.
While Russia’s interest in crypto extends beyond domestic adoption, the country sees it as a potential solution for cross-border transactions. Faced with sanctions from various nations due to its actions in Ukraine, Russian authorities are exploring crypto’s role in mitigating the impact on international trade.
Aksakov revealed that the mined cryptocurrencies could be utilized for cross-border settlements with foreign partners. This aligns with the Central Bank’s intention to establish specialized authorized organizations for crypto mining by Russian entities.
Despite having an anti-crypto stance, the regulator supports the use of cryptocurrencies for international payments. Rosbank, one of the largest banks in Russia, recently expressed its intent to facilitate payments for imported goods and services using crypto while ensuring compliance with existing legislative requirements.
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