Bank of Russia Supports Crypto Mining Bill, But Insists Minted Coins Must Be Exported Cointelegraph

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The Moscow Monetary Authority has expressed support for the latest legislative attempt to legalize cryptocurrency mining. However, the regulator wants the mined digital currency to be sold outside the country or only under special legal regimes in Russia, on an exceptional basis.

Russia’s Central Bank Suggests Restrictions Be Added to Proposed Crypto Mining Law

The Central Bank of the Russian Federation (CBR) conceptually supports the bill to legalize the crypto mining sector, but at the same time argues that the digital currencies obtained through the process should be mainly sold on exchanges foreigners and only to non-residents. .

In comments for Russian news agency Interfax, the banks’ press service added that if coins are traded domestically, it should be done exclusively through licensed platforms operating in a controlled regulatory environment. A representative clarified:

We allow the possibility of lifting these restrictions under experimental legal regimes, provided that transactions with cryptocurrencies are carried out through an approved body.

The official stressed that the monetary authority maintains its position, repeatedly expressed and reiterated so far, that the circulation of cryptocurrency within the Russian Federation is inadmissible.

In November, a group of lawmakers submitted to the State Duma, the lower house of parliament, a bill to regulate the mining of currencies like bitcoin and other crypto activities through amendments to the country’s existing law on digital financial assets.

The project provides miners with both options for selling minted coins referenced by the Bank of Russia. In both cases, the Federal Tax Service must be informed of the transactions. Payments by means other than the Russian ruble are prohibited even under current law, but amid the sanctions, the idea of ​​legalizing cross-border crypto settlements is gaining traction.

However, the filed bill does not mention that the mined cryptocurrency should only be sold to non-residents of Russia and its provisions do not refer to an authorized organization for transactions carried out under the special legal regimes in inside the country.

The Ministry of Finance rejects the latest position of the central banks

Speaking to reporters on Tuesday, Deputy Finance Minister Alexey Moiseev said the CBR has a new stance, which in his view amounts to a ban on mining outside of said legal regimes. He said his department did not accept this full license policy.

For months, the ministry and the bank have argued over the regulatory treatment of cryptocurrencies in Russia, with Minfin taking a more liberal stance while the monetary authority has proposed a blanket ban on related activities, including mining. mining and trade.

Despite these lingering differences, the head of the parliamentary financial markets committee, Anatoly Aksakov, reportedly said earlier this week that he expects lawmakers to pass the new legislation before the end of the year.

Meanwhile, the executive director of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), Alexander Brazhnikov, pointed out that when trying to sell abroad, Russian miners are likely to make face restrictions by foreign exchanges. And while trading coins in Russian special regulatory zones is a good idea, establishing them would take at least a year.

Tags in this story bill, Central Bank, Crypto, crypto exchanges, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, bill, Exchanges, Ministry of Finance, Law, legal regimes, legalization, Legislation, Miners, mining, parliament, Regulations, Russia, Russian, Sanctions, State Duma

Do you think the Russian parliament will pass the law regulating crypto mining by the end of December? Share your expectations in the comments section below.

Lubomir Tassev

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

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