• Russia’s State Duma has moved the crypto mining bill to a vote scheduled for July 25th.
• The bill will restrict crypto circulation and only allow registered miners and central bank-approved projects to operate.

After prolonged delays, Russia’s State Duma has pushed the crypto mining bill to the forefront. The bill, which aims to establish legal frameworks for crypto mining and related activities, is scheduled for a vote on July 25th.

Russia’s Parliament is expected to discuss and possibly approve a new law concerning crypto mining soon. The bill, which comes into force on September 1st, will prohibit the establishment of crypto circulation. Thus, only registered miners and projects approved by the central bank will be allowed to work.

Bill Restricts Crypto Circulation

Russian companies and individuals registered on a special list will be allowed to engage in the mining of cryptocurrencies. The government allows private individuals to mine their own cryptocurrencies without registration if they adhere to the government’s energy usage policy. 

Additionally, the bill restricts advertising related to digital assets and the organization of digital asset circulation to prevent unregulated mining activities. This broad-based approach aims to plug legal gaps and ensure that all cryptocurrency activities conform to the country’s laws. 

The new bill allows the Ministry of Digital Development to oversee the implementation of the rules and standards that have been put in place. All crypto miners are to disclose the number of cryptocurrencies mined and the crypto addresses where the tokens are held. In addition, this measure is meant to address issues related to money laundering, terrorism financing, and other unlawful businesses. 

The authorities can also restrict crypto mining in the regions with energy issues, as defined by the Ministry of Energy. The Ministry of Finance endorses the law while pointing out that only professionals should engage in cryptocurrency operations. This enhanced regulation will enable the state to have complete control over the crypto-mining business to prevent any form of dishonesty. 

Western Sanctions Reshape Russia’s Crypto Landscape

Due to the Russian invasion of Ukraine, the financial systems of the country have been highly sanctioned, and people cannot engage in trading with foreign currencies. Cryptocurrencies have provided a solution to many traders and investors, enabling them to deal with such limitations.

The new bill can be seen as an attempt by the state to use decentralized financial systems in order to reduce the effects of sanctions.  Moreover, the adoption of this bill marks a major shift in Russia’s approach to regulating cryptocurrencies. The legal environment created by the bill will help Russian firms become more active in the international market. 

As previously mentioned in our report, the Russian Ministry of Finance has suggested that digital currency trading should be allowed for certain categories of investors on exchanges that are properly licensed, including the Moscow Exchange and the St. Petersburg Exchange. Anatoly Aksakov, the head of the State Duma Financial Market Committee, stated that the biggest exchanges in Russia are ready to accept cryptocurrencies.