Russian Cryptocurrency Industry Leaders and Executives Unite to Draft Bill for Legalizing Crypto Mining in Russia
The cryptocurrency industry in Russia is taking a significant step forward, as leaders and business executives have collaborated to draft a bill that seeks to legalize crypto mining in the country. This groundbreaking initiative was revealed at a cryptocurrency event on March 22, 2024, by Alexander Brazhnikov, the Executive Director of the Russian Association of Cryptocurrency and Blockchain (RACIB), according to ComNews.
The proposed bill aims to formalize the framework for crypto mining activities, which have been operating in a regulatory gray area in Russia. After constructive discussions with regulators, RACIB has taken the initiative to submit draft regulation proposals to key ministries and agencies, including the Ministry of Energy, the Ministry of Economic Development, Rosfinmonitoring, Russia’s anti-money laundering agency, and the Ministry of Finance.
Industry Support and Government Engagement
The push for legalizing crypto mining in Russia comes after previous attempts failed to progress in the Duma, the lower house of the Russian parliament. However, this latest effort has earned the support of State Duma lawmakers Anton Tkachev, Vladimir Plyakin, Grigory Shilkin, and Sardana Avksentyeva. The bill highlights the significant presence of cryptocurrencies in Russia, with over 12 million cryptocurrency wallets opened by Russian citizens, holding a combined total of approximately $108 billion worth of digital assets.
Key aspects of the bill include securing an official classification for mining as a form of economic activity, enabling taxation of crypto–mining operations and creating a legal sandbox for centralized conversion of digital assets obtained through mining. This potential state-run crypto exchange for miners and firms using cryptocurrencies in cross-border trade underscores the government’s interest in engaging with the growing crypto sector.
Investments and Tech Development
Furthermore, RACIB’s efforts include promises of substantial investments in new multi-purpose data centers. These investments could potentially aid the Russian government’s tech development plans and provide a secure operational future for companies within the Russian crypto mining industry. The collaboration between the crypto industry and the Russian government signifies a promising shift towards embracing the digital asset space while ensuring regulatory compliance and financial stability.
