The Russian crypto mining bill is finally headed to Parliament after delays from the State Duma. The new laws will require crypto miners to register and disclose the amount they mine. Russian lawmakers have been working on legal frameworks to regulate crypto mining and other related activities in the country since May.
The State Duma’s financial markets committee has requested the lower house to vote on the bill on July 25th. The bill aims to outlaw the organization of crypto circulation starting from September 1st, only allowing registered miners and projects approved by the central bank.
Only Russian-owned companies and citizens included in a special register for crypto projects will be allowed to mine cryptocurrencies. Private individuals can mine without registering if they follow government guidelines on energy usage. Advertisements for digital assets and the organization of crypto circulation will also be outlawed to discourage mining activities.
The new bill seeks to eliminate legal loopholes in the crypto mining sector in Russia. It will provide the Ministry of Digital Development with the authority to monitor miners’ compliance with regulations. All crypto miners in Russia will be required to report the amount they mine and provide authorities with the crypto addresses where tokens are stored to prevent illegal activities like money laundering and terrorism financing.
Amid western sanctions following the Russian invasion of Ukraine, the economy has been impacted. Cryptocurrencies have become a lifeline for many traders and investors. The new bill aims to bypass these sanctions by leveraging decentralized financial ecosystems. The bill will tighten control over crypto miners and ensure that crypto activities are conducted by professionals.