Russia is on the verge of legalizing industrial crypto mining, with new legislation expected to pass soon, potentially transforming the country’s crypto landscape.
Points
- Russia may legalize industrial crypto mining by the end of the week.
- The new law will require miners to comply with anti-money laundering regulations.
- Legislation includes provisions for reporting suspicious transactions to Rosfinmonitoring.
- The bill aims to regulate the crypto sector and provide official recognition to industrial miners.
- The government is considering various approaches for private miners, including regulation and prosecution.
Russia is poised to legalize industrial crypto mining, with media outlets in the nation claiming that this could happen by the end of the week. Interfax reported that the State Duma passed a third reading of a draft law that would force crypto miners in the Russian Federation to comply with anti-money laundering （AML） legislation.
Russia’s Crypto Mining Law Could Come into Force on Sep. 1
The law is now set to be ratified by the upper parliamentary house before being signed into law by the President’s office. If it passes, miners will need to report information about suspicious-looking crypto transactions to Rosfinmonitoring, the nation’s anti-money laundering agency.
However, this law appears to be just the beginning. The State Duma held the first reading for a broader crypto mining “legalization” bill on July 23. If passed, this bill will legalize digital currency mining activities in the Russian Federation starting September 1, 2024.
One of the bill’s authors, lawmaker Anton Gorelkin, has indicated that the draft law will be fully adopted before the end of the Duma’s spring session, which wraps up on August 5. Gorelkin mentioned that a package of amendments for the bill’s second reading has already been formed, and the bill could be adopted in full by the end of the week.
Putin Wants Crypto Progress
The Chairman of the State Duma’s Committee on the Financial Markets, Anatoly Aksakov, confirmed that the legislation is ready for a vote, following over two years of deliberations. Aksakov expects the bill to regulate the crypto sector at the legislative level, which could include provisions for crypto exchanges operating within a regulatory sandbox and regulations for Russian firms wanting to use crypto for cross-border trade.
President Vladimir Putin has called on lawmakers to fast-track crypto mining regulation. While the Central Bank previously proposed banning crypto mining, the industry has grown significantly in recent months. The fate of private miners remains unclear, with various proposals being floated, including banning all non-industrial mining or allowing power companies to “hunt” and prosecute private miners. A more lenient approach might allow miners to operate from home as long as they do not exceed fixed energy consumption thresholds.
Industrial Miners: Reason for Cheer?
Industrial miners will likely welcome the news. Although the new laws will require them to abide by AML protocols and pay taxes on their earnings, they will gain official recognition as business operators. This official status will open the door for domestic investment in what has become one of Russia’s fastest-growing business sectors.
解説
- The potential legalization of industrial crypto mining in Russia represents a significant shift in the country’s approach to the crypto industry.
- The new legislation will provide regulatory clarity and official recognition to industrial miners, promoting domestic investment and growth in the sector.
- The government’s consideration of various approaches for private miners reflects the complexities and challenges of regulating the crypto mining industry.
- Understanding the implications of these regulatory changes can provide insights into the future of crypto mining in Russia and the broader global market.
- The call for fast-tracking crypto mining regulation by President Putin underscores the strategic importance of the industry for Russia’s economy.