A draft bill has been created by Russian crypto industry chiefs and business leaders to legalize the nation’s booming mining sector. This bill was presented by Alexander Brazhnikov, the Executive Director of the Russian Association of Cryptocurrency and Blockchain, at a crypto-related event on March 22. The industry body, RACIB, has sent draft regulation proposals to various ministries, including the Ministry of Energy and the Ministry of Economic Development. The bill has already gained support from State Duma lawmakers and aims to regulate the growing crypto industry in Russia, where citizens are said to be holding a total of $108 billion worth of coins in crypto wallets.
The draft bill claims that Russian citizens have opened more than 12 million cryptocurrency wallets, making the nation one of the world’s leaders in terms of mining capacity. However, all transactions involving crypto are currently carried out in an unregulated zone, putting legitimate business operations at risk of criminal prosecution. Previous attempts to legalize crypto operations in Russia have failed, but industry leaders remain hopeful that this latest effort will succeed. The bill includes proposals for mining policy and promises significant investments from industry players in new multi-purpose data centers.
Mining firms such as BitRiver are already investing in new facilities in the Russian South, aiming to secure official recognition for mining as a form of economic activity. This would allow the Russian state to tax crypto miners while ensuring a safe future for companies expanding their operations in the country. Industry leaders also seek the creation of an experimental legal sandbox for the centralized conversion of digital assets obtained through mining. Some lawmakers are interested in creating a state-run crypto exchange for miners to facilitate cross-border trade using crypto as a payment tool.
It is reported that about 6,000 older Bitcoin mining machines in the US will be idled and sent to a warehouse in Colorado Springs, where they will be refreshed and resold to buyers overseas looking to profit from mining in lower-cost environments. The Russian mining community has been trying to engage with Moscow through working groups and bill proposals, attempting to convince regulators to legitimize the mining sector. However, some financial advisors caution that these efforts may not be successful, especially as Moscow focuses on developing operations with the digital ruble. The fate of the proposed bill could hinge on the government’s priorities, particularly with regard to the CBDC project and the regulation of the crypto sector.
Overall, the Russian crypto industry is pushing for the legalization of the mining sector to create a more stable and regulated environment for businesses operating in the space. Industry leaders are advocating for official recognition of mining as a form of economic activity, which would enable the government to tax miners and ensure a safe future for companies investing in new data centers. The draft bill proposed by the Russian Association of Cryptocurrency and Blockchain has garnered support from some lawmakers and aims to bring about significant changes in the industry by providing clear regulations for crypto transactions. Despite past failures, industry players remain hopeful that this latest effort will succeed in establishing a legal framework for the crypto industry in Russia.
