Russia’s Duma made a very important move for Bitcoin and altcoins. In this context, the Duma approved a bill to legalize BTC mining and crypto payments. This move paves the way for a regulated digital currency mining industry. The bill aims to curb illegal activities, attract investments and create jobs. As such, it marks a significant shift in the country’s approach to cryptocurrencies.
Russia has created a legal framework for Bitcoin mining!
As you have been following on Kriptokoin.com, countries are now taking a friendlier attitude towards the crypto world. This is partly the result of regulatory efforts. The bill, submitted by a group of deputies led by Anatoly Aksakov, Chairman of the Duma Financial Markets Committee, sets clear rules for Bitcoin mining. According to RIA Novosti, the bill aims to reduce illegal mining activities and related crimes by implementing strict controls. According to Nikita Chaplin, a member of the Budget and Taxes Committee, the regulation will make it harder to use cryptocurrencies for illegal transactions. Chaplin also noted that miners mined about 54,000 Bitcoins last year, worth over $3.5 billion.
Meanwhile, the draft law outlines requirements for individuals and legal entities involved in cryptocurrency mining. The government will set these standards in agreement with the Central Bank of Russia. In addition, the Ministry of Digital Development will oversee compliance, ensuring that mining activities adhere to the set rules.
The law also sets some limits
However, the report also states that the government could ban crypto mining in certain regions if necessary. Only registered legal entities and individual entrepreneurs can mine in the country. However, non-entrepreneurial citizens can mine without registration if they stay within the energy consumption limits set by the Council of Ministers. The procedure for keeping this register will be detailed in a government regulatory law. In addition, legal entities and entrepreneurs are prohibited from combining mining and electricity-related activities. The aim of this separation is to avoid conflicts of interest and ensure fair play in the energy market.
Regulation and harmonization efforts for Bitcoin and altcoins
The bill requires miners to report the cryptocurrency mined and the address identifiers used for transactions. This information will be provided to a government-authorized agency. In addition, Rosfinmonitoring will compile a list of suspicious cryptocurrency addresses to assist anti-money laundering (AML) efforts and prevent terrorist financing.
Meanwhile, the bill would also allow the sale of mined cryptocurrency without using Russian information infrastructure. However, it prohibits the circulation of cryptocurrency within Russia, except for mining and distribution in mining pools. It also prohibits the promotion of goods and services related to the issuance of cryptocurrency, as well as advertising or offering to the public for altcoins. The law will enter into force on September 1, 2024. This regulation represents a significant shift in Russia’s stance in the cryptocurrency world, aiming to promote a controlled and legal cryptocurrency market.
Follow us on Twitter, Facebook and Instagram, and join our Telegram and YouTube channelto stay up to date with breaking news !
