Russia is on the verge of legalizing industrial crypto mining, with the State Duma passing a draft law that would require miners to comply with anti-money laundering legislation. If the law is ratified, miners will need to report suspicious crypto transactions to the nation’s anti-money laundering agency. Another bill for the legalization of digital currency mining from September 1, 2024, has also been discussed in the Duma. Lawmakers are working to adopt this bill before the end of the Duma’s current session on August 5.
The legalization of crypto mining in Russia has been a long-awaited development, with top lawmakers confirming that the legislation is finally ready for a vote. The Chairman of the State Duma’s Committee on Financial Markets stated that the laws regulating the crypto sector are expected to be adopted in the current parliamentary session. These laws could include regulations for crypto exchanges and Russian firms using crypto for cross-border trade. President Vladimir Putin has also called for fast-tracking crypto mining regulation, despite previous proposals to ban mining by the Central Bank.
The fate of private miners in Russia still remains unclear, with proposals ranging from banning non-industrial mining to allowing miners to operate within fixed energy consumption limits. Industrial miners, however, are likely to benefit from the new laws as they will gain official recognition as business operators. This will open the door for domestic investment in the rapidly growing crypto mining industry. Representatives of the mining industry and cryptocurrency users have urged the government to regulate the sector at the legislative level, paving the way for increased business opportunities in the sector.
The potential legalization of industrial crypto mining in Russia comes at a time when the industry is experiencing significant growth in value. Despite concerns about electricity shortages due to increased bitcoin mining activity in the country, the government seems determined to move forward with regulating the sector. The bills being discussed in the State Duma could also address issues such as banning private mining and providing options for power companies to monitor and prosecute private miners.
Overall, the move towards legalizing industrial crypto mining in Russia is seen as a positive development for the industry. The new laws will bring much-needed clarity and regulation to the sector, allowing miners to operate within the bounds of the law while contributing to the country’s economy. With support from top lawmakers and the President, it is expected that the legislation will be passed in the near future, opening up new opportunities for investment and growth in the crypto mining sector in Russia.
