The lower house of the Russian parliament, the State Duma, has voted against legislation aimed at regulating cryptocurrency mining. While lawmakers have rejected this proposal, which is also aimed at legalizing crypto payments in the country, another bill on mining, which allows cross-border transactions with digital assets, is expected to be introduced in the legislature in the near future.
Alternative proposals to organize a crypto-mining clash in the Russian parliament
The State Duma of the Russian Federal Assembly voted this week to reject a bill on cryptocurrency mining. The bill “Mining in the Russian Federation” was introduced earlier by members of the liberal neo-people faction.
Lawmakers have criticized the sponsors for failing to properly formulate regulatory principles for the activity as well as requirements for data centers and mining operators and to propose measures to tax mining companies.
Representatives of parliamentary committees that reviewed the legislation also described it as fragmented and ambiguous, Russian crypto news site Bits.media reported. They highlighted that it does not specify how miners and their equipment will be registered or how those who work in mining will be recognized as individual entrepreneurs.
The rejection of the bill comes on the recommendation of the Financial Market Committee. Its members noted that it provides for the use of cryptocurrencies for payments within the Russian Federation, when the country’s constitution defines the Russian ruble as the only legal tender and prohibits so-called “cash substitutes”.
Meanwhile, another legislative proposal to regulate crypto mining was introduced this week as well. According to Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy, this new draft, which will contain provisions allowing cross-border crypto payments and facilitating the development of domestic crypto infrastructure, will soon be submitted.
Citing RBC Crypto, Gorelkin clarified on Telegram that this will be a more detailed document that takes into account the views of the Central Bank and the Ministry of Finance and does not threaten the ruble as the only means of payment in Russia. The deputy represents the ruling conservative United Russia party.
The future of cryptocurrency and related activities such as mining have been the subject of lengthy discussions among government institutions in Moscow over the past year. Most officials maintain that they should not be used for payments in Russia, but due to the pressure of sanctions, the idea of legalizing international crypto settlements has gained support.
The draft “On Digital Currency” bill is also expected to fill the gaps in the regulatory framework remaining after the adoption of the Digital Financial Assets Act. The latter came into effect in January of last year and mainly covers digital currencies and tokens with an issuer.
Over the past two years, bitcoin mining has proven to be a profitable business in Russia, especially in its energy-rich regions. According to the post ReportRevenue in the sector has increased 18 times since 2017, but so have Russian miners He hits severely due to Western restrictions imposed on the invasion of Ukraine.
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