Cryptocurrency Mining as a Potential Export Industry
Russia is considering a new proposal that would categorize cryptocurrencies mined within the country as export products. Deputy Finance Minister Ivan Chebeskov announced this initiative during a recent roundtable discussion titled “Cryptocurrency and the Future of Digital Finance.”
Draft Legislation Modeled After Natural Gas Exports
The draft legislation for this proposal is being developed, drawing parallels with the existing rules for natural gas exports. This move signifies Russia’s evolving approach to handling mined cryptocurrencies.
Direct Overseas Sales of Mined Cryptocurrencies
The proposed legislation would enable cryptocurrency miners to sell their mined digital currencies directly to overseas buyers. Chebeskov stated, “There is an option and a bill to use the export of cryptocurrency as a product of mining activity.”
Alignment of Finance Ministry and Central Bank on Crypto Mining
The Ministry of Finance and Russia’s central bank have reportedly aligned their views on formally recognizing cryptocurrency mining as an industry. This alignment also extends to enabling the use of digital currencies in foreign trade settlements.
Regulatory Framework and Legislation in Progress
A separate bill legalizing cryptocurrency mining has already passed its first reading in the State Duma, Russia’s lower house. This legislation establishes a framework for miners to sell cryptocurrencies and restricts the open advertising of digital currencies to unrestricted audiences.
Operational Guidelines for Miners
The bill mandates that miners use foreign-based exchanges and wallet platforms for transferring newly minted coins. Additionally, all transactions must be reported to the Federal Tax Service, ensuring regulatory oversight.
Projected Timeline for Mining Regulations
Anatoly Aksakov, head of the State Duma’s Financial Market Committee, anticipates that the mining regulations could be implemented sometime in 2024, pending further debate and revisions. However, the exact timeline for these regulatory changes remains uncertain.
Russia’s Forward Movement in Cryptocurrency Sector
Russia’s consideration of these proposals and legislative measures indicates a significant shift in its stance towards the cryptocurrency sector, particularly in recognizing and regulating cryptocurrency mining as a potential export industry.