The Russian government’s crypto working group chairman, Andreу Lugovoy, has stated that Bitcoin (BTC) mining regulation is now a priority for Moscow. After years of infighting and neglect, various government bodies, ministries, and the Central Bank are close to regulating the crypto sector. The regulation of Bitcoin mining is the first step in this process, with plans to impose anti-money laundering and anti-terrorist financing rules on the cryptocurrency sector. Privacy coins like Monero may be prohibited due to their potential use for criminal activities. The lack of regulations has had a significant impact on the fast-growing crypto mining sector in Russia but progress is being made as different agencies have agreed on an approach to regulating cryptocurrencies.
The working group has been working to break a political deadlock that has left the Russian crypto sector largely unregulated. This lack of regulation has been particularly harmful to the crypto mining sector, which has experienced significant growth in recent years. The working group has held numerous meetings with representatives from various sectors to discuss all aspects of regulating the crypto industry. The goal is to take consistent and effective steps towards regulation, with adjustments and further steps to be taken as necessary. There is concern about the Ministry of Energy’s plans to increase electricity tariffs for miners, which could have a negative impact on both legal miners and Russia’s current advantages in the crypto industry.
In response to concerns about the Ministry of Energy’s proposed electricity tariff hikes, the working group chairman, Andreу Lugovoy, has suggested that industrial miners should be taxed like any other company. He also recommended that miners should report all hardware they import into the country to ensure transparency. Lugovoy also serves as the First Deputy Chairman of the State Duma’s Committee on Security and Anti-Corruption and has been vocal about the need for crypto regulation in Russia. He has criticized the lack of regulation in the crypto sector, stating that it benefits Western sanctions policies against Russia and undermines the country’s anti-sanctions policies. Legalizing the crypto mining industry could potentially provide the Russian state with a significant tax revenue windfall.
Rosfinmonitoring has called for faster regulatory rollouts in response to the Financial Action Task Force (FATF) downgrading Russia’s compliance rating in February. The FATF determined that Russia’s efforts to regulate the industry were insufficient and did not do enough to prevent money laundering. Lugovoy has been actively involved in advocating for crypto regulation in Russia and has pushed for the legalization of crypto mining. In previous statements, he has accused Western nations of using crypto to fund operatives in Russia and has criticized the Central Bank’s attempts to ban crypto-related activities in the country. The Russian government appears to be moving towards comprehensive regulation of the crypto sector, starting with the regulation of Bitcoin mining and potentially expanding to other cryptocurrencies and activities in the future.
