Russia Removes Ban on Cryptocurrency Transactions and Private Mining
The Russian State Duma has removed the ban on cryptocurrency transactions and private mining from a proposed law, a move aimed at addressing significant concerns from the crypto industry. The law initially included a prohibition on the creation of domestic exchanges and trading platforms, causing apprehension among crypto businesses. Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy, announced the revision on his Telegram channel, stating that the Financial Market Committee managed to eliminate the controversial ban, according to RBC.
The proposed regulations on mining and cryptocurrency transactions, as well as experimental crypto settlements, were passed by the Duma on July 23. Legislators, including co-authors of the document, labeled several provisions as “ambiguous.” The law does not prohibit individuals from using cryptocurrencies or utilizing familiar wallets and exchanges. However, the initial draft aimed to ban the establishment of Russian exchanges, exchangers, and other forms of “crypto turnover organization.” The Ministry of Finance had already opposed this controversial provision, according to Interfax.
In addition to removing the transaction ban, the Duma proposed prohibiting the advertisement of digital currencies, mining services, mining companies, exchanges, and exchangers. This advertising ban will be integrated into the Federal Law “On Advertising,” according to Gorelkin.
Another proposal in the second reading of the bill concerned “household miners.” The Energy Committee highlighted that the proposed mechanism with electricity consumption limits could be ineffective and might continue to foster black-market mining. However, the proposal to completely ban individuals from mining was rejected.
The second bill, recommended for a second reading by the Duma Committee, legalizes the use of cryptocurrencies for cross-border settlements. Gorelkin emphasized the need for discretion regarding these mechanisms to avoid benefiting adversaries, stating, “Money loves silence, and this fully applies to crypto in cross-border transactions.”
The initial draft of the mining and cryptocurrency regulation appeared in November 2022, with amendments introduced in April 2024. Last week, President Vladimir Putin urged expedited regulation of cryptocurrencies and digital assets. The revised bill requires Russian miners to comply with anti-money laundering laws, signifying a critical step in legalizing and regulating the crypto sector in Russia.
