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Russia Could Legalize Crypto Mining by Jan 1, 2023 – As Long as This Happens

Tim Alper
Last updated: | 2 min read
Source: Alexey Novikov/Adobe

Russia may finally legalize crypto mining – after the government’s chief crypto legislation architect announced the rollout of a bill that could come into force on January 1, 2023.

Speaking to RIA Novosti, the head of the State Duma’s Committee on the Financial Markets, Anatoly Aksakov, stated that the bill would be read in parliament next month. There, it would need to be approved by MPs who have already knocked back a similar proposal.

The bill would need to pass both a first and second reading, but Aksakov opined that the two readings could be conducted in December “as we plan to have the bill come into force on January 1, 2023.”

A previous attempt to legalize crypto mining earlier this year failed after it was voted down by MPs. Critics of that bill claimed that it had been rushed and was lacking in many areas.

But this bill could well be different. The earlier proposal was launched by a group of opposition MPs. And while the new bill is not directly sponsored by the government, the fact that the likes of Aksakov have been instrumental in putting it together will likely smooth its passage through the Duma.

Aksakov stated that the bill would be shown to MPs in the chamber today. Votes are likely to be scheduled in the coming weeks.

However, he also appeared to indicate that a number of compromise measures have been worked into the terms of the bill. The crypto-skeptic Central Bank remains vehemently opposed to the adoption of crypto and has stated that it would prefer a total, China-style ban.

As a result, the bill appears to propose allowing companies to carry out crypto mining operations on Russian soil – as long as they do not let the coins they mine enter the Russian economy.

Russia to Create Crypto Mining “Pool”

The bill also proposes, Aksakov explained, creating a “pool” of approved “individual” and “industrial miners. This pool will be regulated by government-appointed bodies.

As such, tokens obtained through mining would be “subject to sale without the use of Russian [financial] infrastructure,” the MP explained. But Aksakov added that Moscow also wanted to create a sandbox whereby “transactions” could be conducted “under an experimental legal system.”

Companies working in the sandbox would be allowed to conduct crypto-related transactions in Russia – but only under tight regulatory supervision.

Details about this sandbox, he stated, would be included in a second draft law – to be introduced at a later date.

A number of Russian ministries are keen to begin taxing crypto miners, while a number of key energy firms have stated that they want to use their resources to mine tokens.

Aksakov stated:

“The adoption of a law on mining will bring this form of activity into the legal sector. […] It will also help build up the comprehensive regulation of issues related to the issuance and circulation of digital currencies [in Russia].”