State Duma (the lower Russian house of parliament) voted no to a bill that would regulate crypto mining. Although lawmakers rejected the proposal that also sought to legalize cryptocurrency payments in Russia, another draft of law regarding mining is likely to be introduced in the legislature. It allows cross-border transactions using digital assets.
Other Proposals To Regulate Crypto Mining Clash In Russian Parliament
The Russian Federal Assembly’s State Duma voted this week to reject the draft law regarding cryptocurrency mining. The bill “On Mining in the Russian Federation,” was submitted earlier by members of the liberal New People faction.
Lawmakers criticize the sponsors’ inability to formulate appropriate regulatory principles for this activity, as well requirements for data centers or mining operators. They also suggest a process for taxation of mining businesses.
According to Bits.media, representatives from the various parliamentary committees reviewed the legislation and described it as unclear and fragmented. They highlighted it doesn’t specify how miners and their equipment would be registered or how those who mine as individual entrepreneurs would be identified.
Following a recommendation from the Financial Market Committee, the bill was rejected. Its members noted that it provides for the use of cryptocurrencies for payments inside the Russian Federation, when the country’s constitution defines the Russian ruble as the only legal tender and bans so-called “monetary surrogates.”
Another legislative proposal has also been submitted this week to regulate digital currency extraction. Anton Gorelkin is the deputy chairman of Duma Committee on Information Policy. The new draft includes provisions that allow cross-border crypto payments. It will also facilitate the development and maintenance of crypto infrastructure in the country.
RBC Crypto quotes Gorelkin, who explained to Telegram that the document will include more information that takes in the views of both the Central Bank of Russia (Central Bank) and the Ministry of Finance. However it does not endanger the ruble’s status as Russia’s only method of payment. This lawmaker represents the conservative ruling party United Russia.
Over the last year, long-running discussions have been held between Moscow’s government institutions about the future of cryptocurrency and other related activities like mining. Although most officials insist they shouldn’t be used to pay in Russia, the possibility of legalizing international crypto settlements is gaining popularity due to sanctions.
A draft law “On Digital Currency” is also expected to fill the gaps in the regulatory framework remaining after the adoption of the law “On Digital Financial Assets.” The latter went into force in January of last year and covers primarily digital coins and tokens with an issuer.
In Russia’s most energy-rich regions, bitcoin mining has become a very profitable industry over the past few years. Recent data shows the industry’s revenues have increased 18-fold since 2017. However, the Western restrictions on the invading Ukraine made it difficult for Russian miners to make money.
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