In July 2024, the State Duma adopted in the first reading a bill that will allow the legalization of cryptocurrency mining in Russia.
Legalization of Cryptocurrency Mining
In July 2024, the State Duma adopted in the first reading a bill that will allow the legalization of cryptocurrency mining in Russia. This bill, presented by a group of deputies led by the chairman of the financial market committee, Anatoly Aksakov, was first introduced in November 2022 and has undergone several revisions.
The main goal of the law is to establish clear rules and conditions for cryptocurrency mining. This will help reduce the risks of illegal activities in this area and ensure control over energy consumption. According to the new law, mining will be allowed only if certain requirements are met, which will be established by the government and agreed upon with the Central Bank. In particular, the legalization of mining farms will require registration and the provision of information about the mined cryptocurrency to Rosfinmonitoring.
From September 1, 2024, if the law is finally adopted, new norms will come into force that will allow mining provided that registration and established energy consumption limits are observed. The law also prohibits the organization of the circulation of digital currencies within the country, except in cases related to mining and subsequent distribution of the mined currency.
Foreign Trade Settlements and Cryptocurrency Trading
The second bill adopted by the State Duma allows from September 1, 2024, the implementation of foreign trade settlements and cryptocurrency trading within the framework of experimental legal regimes. The Central Bank of Russia is discussing the conditions of this experiment with the government and businesses, and the first payments are expected by the end of the year.
This step is aimed at exploring the possibilities of using cryptocurrencies in international trade and on exchanges, which may open new prospects for Russian companies. Experimental legal regimes will allow assessing the effectiveness and safety of such operations, as well as identifying potential risks and ways to minimize them.
Public Reaction and Expectations
The cryptocurrency industry has received the bills critically. Business representatives note that the documents lack stimulating measures that could contribute to the development of the industry. In particular, proposals were made to introduce appropriate OKVEDs for the legal registration of crypto companies and self-regulation through professional standards. However, these proposals were not taken into account during the revision of the bills.
Despite this, the adoption of laws on mining and cryptocurrency trading is an important step towards the official recognition and regulation of the cryptocurrency industry in Russia. This can lead to more transparent and safe conditions for doing business in this area.
Thus, Russia is taking significant steps towards the legalization and regulation of cryptocurrencies, which may have a significant impact on the development of the crypto industry in the country and its integration into the global economy.
