Russia Finalizes Draft Law on Cryptocurrency Mining Regulation
Russia is taking significant steps toward regulating its burgeoning cryptocurrency mining industry with a newly revised bill set to be introduced in the State Duma. The deputy head of the Duma Committee on Information Policy, Anton Gorelkin, announced this development, emphasizing that the legislation aims to establish a solid legal framework for cryptocurrency mining operations, according to RBC.
Under the proposed law, only registered Russian legal entities and individual entrepreneurs will be authorized to engage in cryptocurrency mining. However, unregistered individuals can also mine, provided they adhere to government-set energy consumption limits. This measure seeks to mitigate the risk of excessive energy use that could disrupt local power grids and impact other consumers.
Importantly, the bill mandates that miners must report their cryptocurrency earnings and wallet addresses to Rosfinmonitoring, enhancing transparency and oversight. Despite these regulations, the bill permits the unrestricted sale of mined cryptocurrencies, allowing transactions both within Russia and through foreign platforms.
A pivotal aspect of the bill is the government’s authority to restrict mining activities in specific regions, especially those facing power shortages. This follows concerns from the Ministry of Energy about potential negative impacts on energy availability for industrial and social infrastructures due to increased mining activities. In response, the ministry has proposed significantly higher service rates for miners in these regions.
The draft law also anticipates potential shifts in the mining industry’s dynamics, suggesting that the formalization of mining operations could attract new players, potentially displacing existing ones. This has sparked a call for ongoing dialogue between miners and regulators to ensure the industry’s growth aligns with national interests.
Industry leaders have expressed cautious optimism about the bill. Igor Runets, CEO of BitRiver, lauded the bill as a major advancement, though he acknowledged that some aspects might not fully align with industry expectations. The dialogue during the legislative process is hoped to refine these areas.
The move to formalize cryptocurrency mining in Russia reflects the country’s growing role in the global mining sector, where it is now a significant player following the United States. By creating a clear regulatory environment, Russia aims to leverage its industrial mining capabilities more effectively and ensure the sector’s sustainable development.
