Lawrence Damilola
Russia is reportedly close to legalizing industrial crypto mining. According to a local media report, the State Duma passed the third reading of a draft law requiring crypto miners to comply with anti-money laundering (AML) regulations. The upper house of parliament will soon consider this law, which, if approved, will be signed by the President’s office.
The report said that the new law would oblige miners to report suspicious crypto transactions to Rosfinmonitoring, Russia’s anti-money laundering agency. This is seen as part of wider regulatory efforts to manage the country’s cryptocurrency sector, which focuses on digital currency mining.
Vladimir Putin backs a Russian government proposal to tax and regulate mining of cryptocurrencies, rejecting the central bank’s proposal to ban it completely https://t.co/vHFbI0BgAJ
— Bloomberg (@business) January 28, 2022
Crypto Mining Law Could Be Effective by September
A separate bill that seeks to legalize crypto mining in Russia this year fully is also under discussion. The State Duma conducted the first reading of this bill on July 23, and reports indicate that it is expected to move forward quickly. This bill aims to provide a formal legal framework for digital currency mining in Russia.
Anton Gorelkin, one of the authors of the bill, has indicated that amendments for the bill’s second reading have already been prepared. Media reports suggest that it could be passed before the end of the Duma’s current session, scheduled to end on August 5. The bill could also include regulations for cryptocurrency exchanges and allow Russian companies to use crypto for cross-border trade.
President Putin Pushes for Crypto Regulation
Russian President Vladimir Putin called on lawmakers to speed up the regulation of the crypto mining industry after more than two years of discussions. The Central Bank previously proposed banning crypto mining, but the industry has seen substantial growth in Russia since.
“Uncontrolled growth in electricity consumption for cryptocurrency mining can lead to power shortages in certain regions. Cases of [shortages] have been reported in the Irkutsk Oblast, Buryatia, and the Transbaikal region,” Putin said.
The status of private crypto miners is still unclear. In addition, proposals have been put forward to ban non-industrial mining or to allow individuals to mine at home, provided their energy usage stays within specific limits. There are also suggestions that private miners could remain unregulated for the time being, with the issue addressed at a later date.
The new legislation would mean compliance with AML protocols and taxation on earnings for industrial miners. However, it could also provide them with official recognition as legitimate business entities. The Russian crypto mining industry has grown rapidly, and there has been increased demand from the sector for formal regulations. Lawmakers are also reportedly considering input from representatives of the mining industry as they prepare the final form of the bill.
Read More
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- Russia to Channel Surplus Energy to Legal Crypto Miners Under New Rules
- Chainalysis Accuses Russia of Leveraging Crypto to Evade Western Sanctions
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
