• A bill designed to legalize the mining of cryptocurrencies will be resubmitted to Russian parliament for additional consultation.
• The law aims to recognize mining as a legitimate business activity and oblige involved entities and persons to report their income to tax authorities.
• Another bill is being prepared that will introduce liability for those who mint digital coins illegally.
Crypto Mining Bill Resubmitted in Russia
The draft law legalizing cryptocurrency mining was first filed with the State Duma in November, but will now be resubmitted after additional consultations, according to Anton Gorelkin, deputy chairman of the parliamentary Committee on Information Policy. Once approved it will recognize mining as a legitimate business activity and oblige involved entities and persons to report their income to tax authorities.
Adoption Postponed
The original plan was to vote on the law by the end of 2022, however it has been postponed due to difficulties in its consideration process. It also prohibits advertising or other forms of promoting crypto assets to unlimited audience.
At-Home Mining Blamed for Breakdowns
Extracting cryptocurrencies has become a popular source of income for many Russians in regions maintaining low electricity rates, however it has been blamed for breakdowns and fires leading some officials proposing a ban on at-home mining in residential areas.
Liability Bill Being Prepared
Lawmakers are now preparing another bill which will introduce liability for those who mint digital coins illegally. This bill is expected to be put into effect soon once approved by parliamentarians, with no exact date specified yet.
Crypto Regulations Remain Opposed
Despite showing interest in using cryptocurrencies in international settlements amid sanctions, most government institutions remain opposed allowing crypto payments inside Russia until further regulations are introduced.