According to foreign media reports, the Russian State Duma has passed a bill legalizing Bitcoin mining and allowing the use of cryptocurrencies for international trade. The bill, initially proposed last year, is expected to come into effect on September 1st, contingent upon final approval from the federal government.
This new law aims to address challenges faced by Russian banks due to regulatory restrictions and international sanctions. These sanctions have significantly disrupted Russia’s trade relations with major partners including China, India, the United Arab Emirates, and Turkey, prompting local banks to become increasingly cautious under Western pressure.
The legislation establishes a comprehensive regulatory framework, outlining requirements for individuals and legal entities engaged in digital currency mining activities (including participants in mining pools), ensuring tax compliance and preventing illicit activities. Oversight of compliance with these established requirements will be overseen by the Ministry of Digital Development. The government reserves the right to prohibit mining activities in certain regions or individual territories.
In addition to direct provisions concerning mining activities, the bill allows for the sale of mined cryptocurrencies without using Russian information infrastructure, exempting these transactions from domestic currency regulation laws. Nevertheless, the use of cryptocurrencies for payments within the domestic market remains prohibited under the law.
To control the spread of digital currencies domestically, the bill includes a ban on cryptocurrency advertising. Furthermore, Russia is also considering the official legalization of stablecoins for international transactions, aiming to simplify cross-border payments for Russian companies amidst ongoing sanctions.
On another front, the Russian Ministry of Finance has recently proposed allowing traditional exchanges to facilitate digital asset transactions for selected investors, outlining potential regulations for organized digital currency trading based on exchange licenses.
