Russian State Duma Outlines Conditions for Cryptocurrency Mining Legislation

Valery Seleznev, Deputy Chairman of the State Duma Committee on Energy, emphasized the need for legislative frameworks to establish “flexible conditions” for cryptocurrency mining in Russia. Speaking at the International Economic Forum (FIEF) in St. Petersburg, Seleznev highlighted that only after the legislation is passed can the state set OKVED codes for mining, taxation norms, and other regulatory elements essential for Russian miners, according to Cryptobriefing.

Participants in the forum discussed the potential of cryptocurrencies in international economic settlements, existing regulations, and draft laws under consideration. Seleznev stressed the importance of being technologically up-to-date, from mining to artificial intelligence, to create a favorable business environment for miners. He mentioned that the state would provide preferences and flexible conditions once the law is enacted.

“The flexibility should be that it should be accepted at the level of the state that the assets that are obtained by computing are the subject of deep processing of primary energy resources and do not require global infrastructure – port facilities, construction of railways, warehouses for storage and so on,” Seleznev said. – Here are the calculations, they have happened, and they are realized through infrastructure that is very mobile and accessible to all, with high additional profit and the highest liquidity.”

Russian Deputy Finance Minister Ivan Chebeskov, also speaking at the forum, supported using cryptocurrencies for international settlements as an alternative instrument. However, Seleznev noted that the bill on cryptocurrency regulation and mining, initially expected to be adopted in the spring session, received a negative response from the State Duma on June 5. The bill will likely be reconsidered in the autumn session.

Seleznev acknowledged the positive impact of forming an association of professional market participants, which facilitates a consolidated dialogue between the state and business. He affirmed the necessity of legalizing industrial mining in Russia to ensure a structured and regulated approach to the industry.

The adoption of this legislation is crucial for providing a clear regulatory framework for cryptocurrency mining in Russia. It will help align the industry with global standards while fostering technological advancement and economic growth. The delayed adoption underscores the complexities involved in integrating cryptocurrencies into the legal and economic systems, highlighting the need for thorough and thoughtful legislation.