Russian lawmakers have recently passed a bill legalizing Bitcoin mining and allowing the use of cryptocurrency for international trade. This bill, which has been in the works for several years, is set to go into effect on Sept. 1 pending final approval from the federation.
The Russian State Duma approved the bill with a strong majority, with 404 votes in favor and no votes against or abstentions. This move is seen as a way to address the challenges faced by Russian banks due to regulatory constraints and international sanctions that have disrupted trade relations with key partners.
The new legislation establishes a regulatory framework for overseeing crypto mining activities, ensuring compliance with tax regulations, and preventing illicit operations. Bitcoin mining will now be authorized and regulated by the government and the Bank of Russia, with the aim of bringing these activities out of the shadows and ensuring proper declaration of income and payment of taxes.
In addition to regulating mining, the bill allows the sale of mined crypto without using Russian information infrastructure, exempting these transactions from domestic currency regulation laws. However, the use of cryptocurrencies for domestic payments is still prohibited in Russia, and there is also a ban on crypto advertising to control the spread of digital currency usage within the country.
While the bill does not yet permit the use of cryptocurrencies for domestic payments, it does represent a significant shift in Russia’s approach to digital assets and currencies. The legislation is meant to improve trade relations and challenge global regulatory norms. There are also discussions about legalizing stablecoins for international transactions to simplify cross-border payments for Russian companies amid ongoing sanctions.
The Ministry of Finance in Russia has even proposed allowing traditional exchanges to handle digital asset trading for select investors. This could involve creating special regulations for organized trading in digital currency based on an exchange license or a trading system license.
Overall, the legalization of Bitcoin mining and crypto payments in Russia marks a significant development in the country’s approach to digital assets and currencies. It remains to be seen how these changes will impact the Russian economy and international trade relations moving forward.