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Updated Bill ‘On Digital Currency’ Filed With The Russian Government

Updated Bill ‘On Digital Currency’ Filed With The Russian Government

 

The Ministry of Finance of the Russian Federation has revised a draft bill designed to regulate the country’s crypto space, introducing provisions for cryptocurrency mining. The revised bill has been submitted to the government for adoption during the spring session of the parliament.


Updated Bill ‘On Digital Currency’ Filed With The Russian Government


Russia’s Ministry of Finance has amended a bill intended to implement comprehensive rules for the Russian cryptocurrency sector. The revised version takes into account the positions of other government institutions on the matter, the department announced on Friday.

The finalised draft law "On Digital Currency" has been returned to the cabinet of ministers in Moscow. The legislation, which was initially submitted to the federal government in February, aims to regulate crypto transactions in Russia as well as the activities of crypto market players. It was prepared to fill the regulatory gaps left after the adoption of the law "On Digital Financial Assets."

According to a recent statement by Anatoly Aksakov, chair of the Financial Market Committee at the lower house of the Russian parliament, the new bill is likely to be adopted during the State Duma’s spring session, along with amendments to the Russian Tax Code pertaining to cryptocurrency operations.

Certain provisions in the bill have been clarified, the Finance Ministry said, including those related to the regulation of crypto mining. While the use of bitcoin in payments has been met with opposition, most notably from the Central Bank of Russia and most recently from Prime Minister Mikhail Mishustin, many Russian officials have backed the idea of recognising mining as an economic activity.

In January, the Bank of Russia pushed for a blanket ban on a range of crypto-related activities, including mining, but the Russian government has sided with Minfin’s view that the industry needs to be regulated rather than restricted. President Vladimir Putin has called for them to resolve their differences and focus on Russia’s potential as a mining destination.

In February, the Ministry of Economic Development proposed authorising the extraction of digital currencies in regions with a power surplus and offering miners acceptable electricity rates. In late March, the Ministry of Energy called for the urgent legalisation of mining and the introduction of regional energy quotas for bitcoin farms. This week, the Ministry of Industry and Trade and the Ministry of Construction, Housing and Utilities suggested the implementation of an experimental legal regime for mining.

  

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