In a significant move towards regulating the crypto industry, Russia is advancing a bill to legalize crypto mining, which is currently in a legal grey area. The State Duma, Russia’s lower house of parliament, will vote on this bill on July 23. Proposed by Deputy Anatoly Aksakov, the bill aims to provide a clear legal framework for both individuals and entities involved in crypto mining.
The bill sets out specific requirements that miners must meet, including compliance with anti-money laundering protocols. The Russian government, in conjunction with the Bank of Russia, will establish these requirements. Only registered Russian firms and individual entrepreneurs will be permitted to mine cryptocurrencies, while private individuals will be allowed to mine within specified energy consumption limits.
Furthermore, the bill includes measures to control the circulation of digital currencies to prevent their use in money laundering, terrorism financing, or other criminal activities. It also restricts crypto advertising and mandates that miners report their activities and provide address identifiers to an authorized government body. Mining activities must be separate from any activities related to electric power.
This regulatory step comes amid ongoing international sanctions following Russia’s invasion of Ukraine. The Russian authorities are exploring alternative financial strategies to strengthen their international payment systems and reduce dependence on Western financial networks.
