Crypto Mining Bill Proposal Postponed by Russian Parliament

• The measure was introduced to Russia’s State Duma in November.
• Most Russian authorities continue to oppose legalizing cryptocurrencies.

State Duma members will consider and vote on a bill in 2023. To allow cryptocurrency mining in the Russian Federation, according to the chairman of the Financial Market Committee, Anatoly Aksakov. Who made the announcement in remarks for the crypto section of the business news site RBC.

The prominent senator, who has been actively working to regulate Russia’s crypto industry said that the current legislation needs more approvals. Almost certainly, he was alluding to the need to settle disagreements among the process’s many regulatory bodies.

Eyes Cross-border Payments Due to Sanctions

The measure was introduced to Russia’s State Duma in November. And would make changes to the country’s current statute “On Digital Financial Assets.” In contrast, the latter partly restricted crypto-related activity and did not take effect until January of 2021.

Russian government agencies have been debating how to include cryptocurrency transactions into the present regulatory framework all year. Although most Russian authorities continue to oppose legalizing cryptocurrencies like bitcoin inside the country, there is growing support for their usage in cross-border payments as an alternative to traditional methods due to financial limitations imposed as a result of the conflict in Ukraine. The mining industry is another one hit hard by sanctions.

The Duma’s legal section first shot down the mining bill, arguing that it should be discussed with the Bank of Russia first. Later, the proposal received approval from Russia’s central bank, which has taken a staunch position against cryptocurrencies, but only on the condition that any newly produced coins would be traded outside of Russia or exchanged for rubles only via specialized legal frameworks.