Russia Considers Exporting Cryptocurrencies
Russia’s Ministry of Finance is considering allowing the export of cryptocurrencies produced through mining activities within the country. The export mechanism for cryptocurrencies would be similar to how Russia exports its natural gas.
Russian Miners Given Selling Rights
Deputy Minister of Finance, Ivan Chebeskov, discussed the possibility of Russian miners being able to sell cryptocurrency during a round table on “Cryptocurrency and the future of digital finance.” According to Chebeskov, there is legislation being developed to allow miners to export the cryptocurrency they mine as a product, similar to the export of gas.
Miners in Russia have been attracted to the country due to abundant resources and cheaper electricity costs. The Ministry of Finance and the Bank of Russia recognize cryptocurrency mining as an industry and are exploring the feasibility of conducting settlements in crypto for foreign economic activity.
Legalization of Cryptocurrency Mining in Russia
The State Duma in Russia introduced a bill in November 2022 to legalize cryptocurrency mining. The bill outlines the process for miners to sell the crypto they mine in Russia and includes regulations on advertising and offerings of cryptocurrency. The bill also proposes allowing the sale of mined crypto assets on foreign platforms without using Russian information infrastructure.
Miners must report transactions involving the sale of cryptocurrencies to the Federal Tax Service and can only sell their mined crypto to non-residents using foreign information infrastructure. Efforts are underway to refine regulations around cryptocurrency mining, with a comprehensive bill expected to be in effect in 2024. However, Russia has yet to legalize the use of digital currencies.
Hot Take: Russia Contemplates Exporting Cryptocurrencies
Russia’s Ministry of Finance is considering allowing the export of cryptocurrencies produced through mining activities within the country. This move would be similar to how Russia exports its natural gas. Deputy Minister of Finance, Ivan Chebeskov, supports the idea of allowing miners to sell the cryptocurrency they mine as an export product. Russia’s Ministry of Finance and Bank of Russia recognize cryptocurrency mining as an industry and are exploring the feasibility of settlements in crypto for foreign economic activity. While efforts are being made to refine regulations and a comprehensive bill is expected in 2024, Russia has yet to legalize the use of digital currencies.
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