A bill aimed at regulating the mining of cryptocurrencies has been submitted to the lower house of the Russian parliament, the State Duma. The bill provides a legal definition of digital currency mining and provides for the creation of a registry of miners.
Russian lawmakers will consider legislation introducing rules for the crypto mining sector
A new draft federal law “On Mining in the Russian Federation” was submitted to the State Duma on Friday, April 29, according to the chamber’s website. The bill aims to take the crypto industry out of the “gray” economy in Russia, a country rich in energy resources and favorable climatic conditions for mining.
The authors of the bill describe digital coin mining as an activity using information infrastructure and equipment located in the Russian Federation, as a result of which a digital currency is created. They also introduce legal definitions of circulation of digital currencies, mining pools and mining operators.
The law provides for the creation of a special register of cryptocurrency miners, which will be maintained by an authorized federal body. Individuals engaged in bitcoin mining will be able to register as individual entrepreneurs or self-employed persons if their electricity consumption exceeds certain limits set by the government.
Only registered organizations and individuals will be allowed to mine, RBC Crypto reported, citing the document. Operators of mining businesses in Russia will have to keep records of cryptocurrencies mined, their types, any contracts with other organizations and coin buyers, exchange operators, payment systems and banks.
If State Duma deputies pass the law, there will be a one-year “amnesty” for registered miners, during which they can resolve any outstanding issues with customs clearance of imported equipment, pay the appropriate taxes and comply with current regulations. This includes the recently adopted rules for money transfers outside of the Russian Federation.
Russian authorities are working on a comprehensive regulatory framework for cryptocurrencies. The Digital Currency Bill was drafted by the Ministry of Finance to fill legal gaps left by the Digital Financial Assets Act enacted last year. The department recently revised the draft to clarify certain aspects related to crypto mining. The Russian parliament is expected to approve the law along with tax amendments during the spring session.
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