Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad – Mining Bitcoin News

Central Bank of Russia agreed to legalize cryptocurrency mining provided that the profits from this activity were converted to fiat in Russia. The regulator’s latest position on the matter comes after it softened its stance on the possible use of cryptocurrencies for payments, even if only internationally.

Central Bank of Russia accepts legalization of cryptocurrency mining

Moscow’s monetary authority is ready to support the legalization and sale of cryptocurrency mining. However, Russian miners must sell any coins that they have obtained in this process. That’s according to a recent statement by Kirill Pronin, head of Bank of Russia’s Financial Technologies Department.

In the ongoing Russian discussions about cryptocurrencies, the central bank was the most vocal voice. It proposed a ban on all related activities, which included mining, earlier in the year. It has begun to change its position after facing resistance from other institutions, as well as having to face financial restrictions that were imposed due to the conflict in Ukraine.

Governor Elvira Nabiullina indicated last month that crypto payments can be permitted if they don’t “penetrate” the Russian financial system. However, Nabiullina stressed that it was not permissible to trade digital currencies such as bitcoin on Russian financial platforms. These assets can be too risky and volatile for potential investors.

Pronin stated that mining is not under the jurisdiction of the Central Bank of Russia, but it was one of many ways to obtain cryptocurrency. He spoke at the St. Petersburg International Legal Forum. Pronin also noted that fees are charged for crypto transaction validation. “The legalization of mining can be discussed, but a number of conditions, in our opinion, must be met in this regard,” he was quoted as saying by Interfax.

Ivan Chebeskov, director of the finance ministry’s Financial Policy Department, pointed out that some large crypto mining companies based in the Russian Federation have been also forced to deal with foreign restrictions when withdrawing funds. Russia could need its own exchange infrastructure for liquidity.

Kirill Pronin reaffirmed, however that, according to CBR, cryptocurrency produced in Russia by its miners must be exported and should not be permitted to accumulate in the country. It is important to not create incentives for the use of cryptocurrency in domestic payments.

Besides the new bill “On Digital Currency,” expected to comprehensively regulate Russia’s crypto space, a dedicated draft law “On Mining in the Russian Federation” was submitted to the State Duma in April. The lower Russian house proposes to recognise crypto mining as an activity that uses Russian information infrastructure or equipment.

What do you think Russia will do to allow cryptocurrency mining? Leave a comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.