The lower house of the Russian parliament, the State Duma, has voted against a law designed to regulate cryptocurrency mining. While lawmakers rejected that proposal, which also aimed to legalize crypto payments in the country, another mining bill, which allows for cross-border transactions with digital assets, is expected to be introduced in the legislature in the near future.
Alternative Proposals To Regulate Crypto Mining Clash In Russian Parliament
This week, the State Duma of the Russian Federal Assembly voted to reject a bill on cryptocurrency mining. The draft law “On mining in the Russian Federation” was introduced earlier by members of the liberal New People faction.
The legislators criticized the sponsors for not adequately formulating the regulatory principles for the activity, as well as the requirements for data centers and mining operators and suggesting a procedure for the taxation of mining companies.
Representatives of parliamentary committees that reviewed the legislation also described it as fragmented and ambiguous, Russian crypto news outlet Bits.media reported. They stressed that it does not specify how the miners and their equipment would be registered or how those who mine as individual entrepreneurs would be identified.
The bill’s rejection follows a recommendation from the Financial Market Committee. Its members noted that it provides for the use of cryptocurrencies for payments within the Russian Federation, when the country’s constitution defines the Russian ruble as the only legal tender and prohibits so-called “monetary substitutes.”
Meanwhile, another legislative proposal to regulate the mining of digital currencies was also presented this week. According to Anton Gorelkin, deputy chairman of the Duma Information Policy Committee, this new draft, which will contain provisions that will allow cross-border crypto payments and facilitate the development of the national crypto infrastructure, will be presented soon.
Quoted by RBC Crypto, Gorelkin explained on Telegram that this will be a more elaborate document that takes into account the views of the Central Bank and the Ministry of Finance and does not threaten the ruble as the only means of payment in Russia. The lawmaker represents the ruling conservative United Russia party.
The future of cryptocurrencies and related activities such as mining has been the subject of lengthy discussions among government institutions in Moscow over the past year. Most officials maintain that they should not be used for payments in Russia, but due to sanctions pressure, the idea of legalizing international crypto deals has been gaining support.
A bill “On Digital Currency” is also expected to fill the gaps in the regulatory framework left after the adoption of the law “On Digital Financial Assets”. The latter came into force in January last year and mainly covers digital coins and tokens with one issuer.
In recent years, bitcoin mining has established itself as a profitable business in Russia, especially in its energy-rich regions. According to a recent report, revenue in the sector has increased 18-fold since 2017, but Western restrictions imposed by the invasion of Ukraine hit Russian miners hard.
Do you think the Russian parliament will support the new draft law on cryptocurrency mining? Share your expectations in the comments section below.
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