Russian legislation would put cryptocurrency mining and sales under an "experimental legal regime"

    Tanya Sharma
    Tanya Sharma
    Published on November 19, 2022 6:55 PM

    Updated on January 10, 2023 2:20 PM

    In Russia's most recent effort to incorporate digital assets into its economy, the law would establish a domestic cryptocurrency market and offer a legal definition of mining and mining pools.
    Russian legislation would put cryptocurrency mining and sales under an "experimental legal regime"
    Source: unsplash

    Russia presently prohibits the usage of cryptocurrency for settlements

    On November 17, a bill to allow cryptocurrency mining and the selling of the cryptocurrency mined was submitted to the State Duma, the lower house of the Russian parliament.

    According to Interfax, the proposed law states that 

    "Digital currency obtained as a result of mining can be disposed of by the person who carried out the mining of this digital currency provided that Russian information infrastructure is not used in conducting transactions with it, except for cases where transactions are carried out following the established experimental legal regime."

    Anatoly Aksakov, the Duma Financial Markets Committee chairman, stated to the neighborhood media that he anticipated the legislation to pass all three parliamentary readings in December and enter into law on February 1. According to several reports, the bill would become law on January 1. Akov stated:

    "The passage of the law will bring this activity into the legal realm and allow for the formation of a law enforcement practice on matters relating to the issuance and circulation of digital currencies."

    Russian miners to get access to foreign marketplaces

    The digital innovation law, passed in 2020, has made it feasible for the experimental sales regime. Mining pools and cryptocurrencies are defined under the bill. Additionally, it outlaws cryptocurrency advertising in Russia.

    If the law is approved, a Russian cryptocurrency marketplace will be created, and Russian miners will have access to foreign marketplaces.

    The transactions in the latter scenario would not be subject to Russian currency controls and regulations, but they would still need to be reported to the Russian tax office.

    Even though cryptocurrency mining is common in Russia, there is presently no legislation governing the taxes on mining activities.

    Russian brokerages were getting ready for the arrival of retail investors

    According to a study released by the Central Bank of Russia on November 7, the nation was ready to accept digital assets on its marketplaces.

    On behalf of the Central Bank, the Moscow Exchange produced a law in September to permit trading in digital financial assets.

    The exchange and significant Russian brokerages were getting ready for the arrival of retail investors, according to a November 18 article in the Izvestia newspaper.

    Related: Report: Role of cryptocurrencies in the Russian economy

    In September, a Russian policy was developed on using cryptocurrencies in international payments. Russian cryptocurrency miners and other users must manage international sanctions and domestic law.