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Russian Ministry of Finance Proposes Cryptocurrency Export Similar to Natural Gas, Potential Mining Regulation by 2024

The Russian Ministry of Finance has unveiled a proposal set to revolutionize the crypto landscape. According to reports from Russian media RBC, the ministry has put forward a visionary plan to treat cryptocurrencies produced from mining activities akin to the country’s natural gas exports.

The proposal, spearheaded by Deputy Minister of Finance Ivan Chebeskov during the “Cryptocurrency and the future of digital finance” round table, introduces the notion of exporting mined cryptocurrencies as a legitimate product. Chebeskov highlighted the parallel between gas exports, which have special legislation governing them, and the potential legislation that would allow miners to export their crypto products.

“This initiative aims to enable miners to export the product of their mining activities, namely cryptocurrency, as an export commodity,” Chebeskov explained.

The Ministry of Finance, in tandem with the Bank of Russia, is pursuing the recognition of cryptocurrency mining as a formal industry. This initiative also includes exploring the possibility of using cryptocurrencies for settlements in international trade, an aspect currently under experimental development.

This recent development follows the submission of a bill to the State Duma in November 2022, seeking to legalize cryptocurrency mining. The bill outlines the mechanism for miners to sell the currency they produce, while imposing restrictions on advertising and offering digital currencies to the public en masse. Notably, the proposed legislation permits the sale of mined cryptocurrencies on foreign platforms, explicitly without utilizing Russian information infrastructure.

An important aspect of the proposal involves two methods of obtaining mined cryptocurrency: through foreign systems without adhering to Russian currency regulations or via a platform established as part of the ongoing experiment. In both scenarios, transactions involving the sale of mined cryptocurrencies necessitate notification to the Federal Tax Service. Additionally, the Central Bank emphasized that these cryptocurrencies could only be sold using foreign information infrastructure and solely to non-residents.

Anatoly Aksakov, the head of the State Duma Committee on the Financial Market, projected that the bill regulating cryptocurrency mining could potentially take effect as early as 2024. The ongoing work on the legislation continues post its initial reading, indicating a concerted effort towards a comprehensive and considered regulatory framework.

This proposal signifies a significant step toward legitimizing and regulating the cryptocurrency sector within Russia. If successfully implemented, it could pave the way for a novel approach to exporting digital assets, potentially altering the global crypto landscape while providing a regulated framework for miners to operate within the country.

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