Energy Ministry of Russia wants to Legalize Crypto Mining
Russia’s Ministry of Energy is advocating for the legalization of industrial crypto mining and urging lawmakers to act.
The ministry expressed its support for a long-awaited mining-related bill during the St. Petersburg International Economic Forum.
The ministry also proposes taxation for miners to regulate the industry.
What is the current status of crypto mining in Russia
As of June 2023, Russia’s Ministry of Energy is advocating for the legalization of industrial crypto mining and urging lawmakers to act. The ministry expressed its support for a long-awaited mining-related bill during the St. Petersburg International Economic Forum.
The ministry also proposes taxation for miners to regulate the industry. In terms of current status, Russia has restricted the use of cryptocurrency within its borders since President Vladimir Putin signed a law to that effect in July 2022.
However, the country’s central bank intends to permit the creation of crypto mining organizations outside of the country, and Russian entities will be allowed to establish special authorized organizations for cryptocurrency mining.
Private companies may be allowed to participate at a later date, officials say. Additionally, the government is working on a bill that will create a national agency to license and supervise cryptocurrency platforms operating in Russia, and a new tax code will be introduced for miners as part of the regulation.
Russia has also provided tax incentives for those who want to invest in crypto mining, and the government has directly supported the opening of a $12 million crypto mining center in east Siberia. As of Q1 2023, Russia has become the world’s second-largest crypto miner, producing 1 GW of bitcoin mining power, surpassing Kazakhstan.
What is the current stance of the Russian government on cryptocurrency trading platforms
Russian government has abandoned its plans to launch a regulated national cryptocurrency exchange and is instead focusing on developing rules that would allow private companies to set up such trading platforms, overseen by Russia’s central bank.
The government wants to legally regulate the possibility of creating such sites by business. The focus is now on the regulation of multiple crypto trading platforms within the country, which aims to provide a structured framework for the creation and management of these platforms.
The government is also working on a bill that will create a national agency to license and supervise cryptocurrency platforms operating in Russia.
Additionally, a new tax code will be introduced for miners as part of the regulation. The Bank of Russia is also working on a bill that will introduce an “experimental legal regime” for cryptocurrencies to be used exclusively in export-import deals.
However, crypto trading and payments inside Russia are still banned, and the government has abandoned the idea of creating a national cryptocurrency exchange.
