The central bank and the finance ministry, two significant government organizations in Moscow, have agreed on how to regulate cryptocurrency mining in the country. A prominent member of the house revealed that the relevant law would shortly be submitted to the State Duma.
Financial Authorities Agree on How to Control Russia’s Digital Coin Mining
A united stance on the regulation of cryptocurrency mining has been taken by the Ministry of Finance (Minfin) and the Central Bank of Russia (CBR). The energy-rich country’s bitcoin-related activity has been growing, both as a lucrative industry and as a source of supplemental income for many Russians.
The State Duma, the Russian parliament’s lower house, will soon receive a draft law establishing regulations for the industry, according to Anatoly Aksakov, chair of the legislative Financial Market Committee, who made the announcement during the Kazan Digital Week forum. He said:
In the near future, the bill will appear in the State Duma, we will work to pass it faster.
The Russian politician also offered his personal opinion on the subject. According to Aksakov, cryptocurrency mining should only be permitted in areas with plenty of energy resources and should be outlawed in those with a lack.
Earlier in September, Prime Minister Mikhail Mishustin requested a consensus position on draft federal laws governing the issuance and circulation of digital currencies, as well as their mining and use in international settlements, from the CBR, Minfin, Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service.
Additionally, the President of the Russian government mandated that by December 1st, the Ministry of Finance, along with the Bank of Russia, submit joint suggestions for the growth of the market for digital financial assets (DFAs), including the use of decentralized technology.
The Strategy for the Development of the Russian Financial Market Until 2030 must be updated by the two regulators. Mishustin said on September 13 that the paper should be amended in light of President Vladimir Putin’s directives and the present geopolitical environment. He also stressed that using DFAs will help ensure continuous payments for imports and exports under the current circumstances.
Russian authorities have been debating how to regulate cryptocurrencies and associated activities for a while, with the CBR and Minfin until recently taking nearly opposing stances. The department has endorsed legalization while the central bank has advocated a complete ban. However, the two regulatory bodies recently concurred that Russia would require international crypto payments to withstand the strain brought on by Western trade sanctions against the country.
The majority of Moscow officials agree that the Russian Federation should take advantage of its competitive advantages in the cryptocurrency mining industry, which was also emphasized by the Russian president. The huge nation’s several regions provide both inexpensive energy and a cool environment. As a result of Moscow’s invasion of Ukraine, sanctions have now been imposed on Russian cryptocurrency miners.