Russian crypto miners will have two additional options for selling their coins under a new bill that has been submitted to the State Duma of the country. A government and financial system that continues to be opposed to the use of digital assets presents a strong challenge to the plan.
Russians have always found it difficult to trade, mine, or even use cryptocurrencies. The Bank of Russia has made clear how sceptical it is of such assets, citing concerns about financial stability and even advocating for a complete ban on trade and mining.
Although it did say earlier this year that it would be open to allowing the use of cryptocurrency for international payments. Furthermore, as part of ongoing sanctions following Russia’s invasion of Ukraine, the EU confirmed earlier this month a ban on providing cryptocurrency-related services to Russian citizens.
However, if this new bill is passed, Russian crypto miners will be able to sell their extracted cryptocurrency on overseas marketplaces as well as within the country thanks to the law on experimental digital regimes. As of January 2023, this new law is in force.
Any profits would still need to be reported to the Federal Tax Office no matter where they sold their cryptocurrency. A comprehensive explanation of what digital currency mining truly entails is one of the bill’s many conditions and definitions.
It is explicitly defined as actions to carry out mathematical computations by using computational hardware, software, and devices to produce entries in a distributed ledger information system with the intention of, in this example, establishing a digital currency and/or getting payment in digital currency.
The document continues by stating that the government of the nation will be in charge of establishing the standards that crypto miners must adhere to. It also states that anyone wishing to “dispose of” their coins may do so so long as they do not use “Russian information infrastructure” to carry out transactions.
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A curious aspect of the bill is that it also calls for a total ban on digital currency advertising, with the exception of mining.
Anatoly Aksakov, chairman of the Financial Market Committee, issued a statement:
The introduction of the mining regulation proposed by the bill, as well as the establishment of certain requirements for this activity, will make it possible to legally conduct this activity, declare earned income, as well as pay the appropriate taxes to budgets at all levels.