The Russian Federation’s Ministry of Finance has changed a draft law intended to regulate the country’s crypto ecosystem, including regulations for cryptocurrency mining. The bill has been resubmitted to the government and may be passed during the spring session of parliament.
A revised ‘Digital Currency Law’ has been filed with the Russian government.
The Russian Ministry of Finance has updated a law aimed at establishing comprehensive rules for the Russian cryptocurrency sector. The department declared Friday that the revised version now takes into account the positions announced by other government institutions on the subject.
The completed draft bill “On Digital Currency” has been returned to Moscow’s council of ministers. The legislation, which was first proposed to the federal government in February, aims to regulate crypto transactions in Russia as well as the activities of crypto market participants. It was created to remedy the regulatory loopholes caused by the passage of the “On Digital Financial Assets” law.
According to Anatoly Aksakov, chair of the Financial Market Committee in Russia’s lower house of parliament, the new law, together with revisions to the Russian Tax Code pertaining to cryptocurrency operations, are likely to be adopted during the State Duma’s spring session.
The Finance Ministry stated that certain elements in the bill, particularly those governing crypto mining, have been clarified. While the usage of bitcoin in payments has been greeted with hostility, most notably from the Central Bank of Russia and, more recently, Prime Minister Mikhail Mishustin, many Russian politicians have supported the concept of recognizing mining as an economic activity.
The Bank of Russia proposed a blanket ban on a variety of crypto-related activities, including mining, in January, but the Russian government has sided with Minfin’s view that the industry should be regulated rather than limited. President Vladimir Putin urged them to settle their disputes and highlighted Russia’s potential as a mining destination.
The Ministry of Economic Development recommended in February to allow the extraction of digital currencies in areas with surplus power and to offer miners reasonable electricity costs. In late March, the Ministry of Energy urged for the immediate legalization of mining as well as the implementation of regional energy quotas for bitcoin farms. This week, the Ministries of Industry and Trade and Construction, Housing, and Utilities proposed the introduction of an experimental mining legal system.