Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad – Mining Bitcoin News

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Bank of Russia Ready to Legalize Crypto Mining If Miners Sell Minted Coins Abroad – Mining Bitcoin News
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The Central Bank of Russia will agree to the legalization of cryptocurrency mining, provided that the proceeds of the activity are converted into fiat currency outside Russia. The regulator’s latest stance on the matter comes after it softened its stance on the possible use of cryptocurrencies for payments, even if only internationally.

Russian Central Bank Accepts Legalization of Cryptocurrency Mining

Monetary authorities in Moscow are now ready to support the legalization of crypto mining on the condition that Russian miners are obliged to sell the coins they acquire in the process abroad. This is according to a recent statement by Kirill Pronin, head of the Bank of Russia’s financial technology department.

Russia’s central bank has been a strong voice in ongoing discussions about the future of cryptocurrencies in Russia, proposing a blanket ban on most related activities, including mining, earlier this year. However, in the face of opposition from other government agencies and having to deal with financial constraints imposed by the war in Ukraine, its stance began to change.

Governor Elvira Nabiullina said last month that crypto payments could be allowed if they didn’t “penetrate” the Russian financial system. At the same time, she insisted that digital currencies such as Bitcoin should not be traded on Russian platforms, as these assets are too volatile and risky for potential investors.

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Speaking at the St. Petersburg International Legal Forum this week, Pronin noted that while mining is not the responsibility of the Central Bank of Russia (CBR), it is one of the ways to acquire cryptocurrencies in the form of verifying crypto transactions performed by miners. “The legalization of mining can be discussed, but in our opinion some conditions must be met in this regard,” he was quoted as saying by Interfax news agency.

Ivan Chebeskov, head of the Financial Policy Department of the Ministry of Finance, noted that some large cryptocurrency mining companies based in the Russian Federation have also been forced to deal with foreign restrictions when withdrawing funds. He suggested that Russia may have to build its own exchange infrastructure to provide liquidity to the industry.

However, Kirill Pronin reiterated that, according to the CBR, cryptocurrencies minted by Russian miners should be sold abroad and not accumulated inside the country. The key is to avoid creating incentives for its subsequent use in domestic payments.

In addition to the new bill “On Digital Currency”, which is expected to comprehensively regulate the Russian crypto space, a special draft law “On Mining in the Russian Federation” was submitted to the State Duma in April. Members of the lower house of the Russian parliament have proposed to treat crypto mining as a commercial activity using Russian information infrastructure and equipment located in the country.

tags in this story

Bank of Russia, CBR, Central Bank, Coin, Crypto, Crypto Miner, Crypto Mining, Cryptocurrency, Cryptocurrency, Treasury, Legalization, Miner, Mining, Minting, Earnings, Regulation, Revenue, Russia, Russian

Do you expect Russia to legalize cryptocurrency mining this year? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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