Russian Ministry of Finance Proposes Exporting Cryptocurrencies as a Commodity, akin to Natural Gas

The Russian Ministry of Finance has presented the idea of exporting cryptocurrencies as a product of mining activities. 

The move is intended to position digital currencies on an equal footing with traditional exports, such as natural gas, potentially reshaping the landscape of the digital currency industry. 

Ivan Chebeskov, the Deputy Minister of Finance, shared details of this innovative initiative during a round table discussion titled “Cryptocurrency and the Future of Digital Finance.” 

He outlined that the proposed regulations for cryptocurrency exports would closely resemble those governing gas exports, enabling miners to sell their digital assets as exportable products.

Russia Seeks to Legalize Bitcoin Mining

The recent proposal follows the submission of a bill to the State Duma in November 2022, which sought to legalize Bitcoin (BTC) mining and establish mechanisms for the sale of mined currencies. The bill includes provisions to ban cryptocurrency advertising and requires the sale of cryptocurrencies to be conducted through foreign platforms, excluding the use of Russian information infrastructure.Both the Ministry of Finance and the Bank of Russia support recognizing cryptocurrency mining as an industry and endorse the use of cryptocurrencies for settlements in foreign economic activities within an experimental framework.As per the proposed bill, cryptocurrency miners can acquire digital currencies through foreign systems or a dedicated platform established for the experiment. In either case, miners are required to report these transactions to the Federal Tax Service. The Central Bank advises that the sale of mined cryptocurrencies be limited to non-residents and conducted exclusively through foreign infrastructure.Anatoly Aksakov, the head of the State Duma Committee on the Financial Market, indicated that the bill regulating cryptocurrency mining could potentially come into effect in 2024. The document is currently undergoing further refinement after its initial reading in the State Duma.

Russia Pushes Forward With CBDC Plans

Back in July, Russian President Vladimir Putin officially signed a bill that would introduce a digital version of the country’s national currency. The move gave legal authority to the Bank of Russia, the country’s central bank, to act as the platform operator for the digital ruble.The digital ruble will act as a new form of payment, alongside cash and non-cash rubles. One of the reasons behind the country’s push into digital ruble is to eliminate the need for the SWIFT payment system, which it has seen a ban from. The digital ruble could help facilitate international settlements for the country independent of a payment system controlled by the West.