Russian law legalises crypto mining, sales under 'experimental legal system'
Cryptocurrency mining and sale of the cryptocurrency mined could be legal in Russia if a bill is passed by parliament. A Russian platform for cryptocurrency sales will be set up if the law is passed, and Russian miners will be able to use foreign platforms. Russian currency controls and regulations would not apply to the transactions, but they would have to be reported to the Russian tax service.
On November 17, a measure to legalise the mining of cryptocurrencies as well as the selling of the cryptocurrencies that have been mined was presented into the Russian State Duma, which is the lower chamber of the Russian government.
At this time, it is not possible to make settlements in Russia using cryptocurrency.
Anatoly Aksakov, the chairman of the Duma Financial Markets Committee, said in an interview with the local press that he anticipated the measure would pass all three readings in parliament in December and that it would go into effect on February 1.
According to some other reports, the measure will officially become a law on January 1st.
The legislation that was established in 2020 regarding digital innovation is what makes the experimental sales regime a possibility.
Mining cryptocurrencies and participating in mining pools are both defined under the proposed legislation.
Additionally, it makes it illegal to advertise cryptocurrencies in Russia.
If the bill is approved, a Russian platform for the sale of cryptocurrencies will be established, and Russian miners will be allowed to utilise platforms located outside of Russia.
In the second scenario, the transactions in question wouldn't be subject to the currency restrictions and rules that Russia has in place, but they would still need to be recorded to the Russian tax authority.
In spite of the fact that there is presently no regulation regarding the taxation of mining operations, crypto mining is quite common in Russia.
According to a study that was published by the Central Bank of Russia on November 7th, it seemed that the nation was making preparations for the entrance of digital assets into its markets.
In September, the Moscow Exchange developed a bill on behalf of the Central Bank to enable trading in digital financial assets. This law was intended to facilitate trading in digital financial assets.
In September, a policy was developed by the Russian government regarding the use of cryptocurrencies in international financial transactions.
Crypto miners and other users in Russia must manage not only national regulations but also international sanctions in addition to this.