Russia is moving towards legalizing industrial crypto mining, with the State Duma passing a draft law that would require miners to comply with anti-money laundering legislation. If the law is ratified by the upper parliamentary house and signed into law by the President’s office, miners will need to report information about suspicious transactions to the nation’s anti-money laundering agency. Additionally, the State Duma is working on a bill that would legalize digital currency mining activities in the Russian Federation starting from September 1, 2024. This has been a long-awaited development, with over two years of deliberations and discussions.
Anatoly Aksakov, the Chairman of the State Duma’s Committee on the Financial Markets, confirmed that the legislation is ready for a vote after an order from President Vladimir Putin. The bills could also include regulations for crypto exchanges and Russian firms using crypto in cross-border trade. Putin has urged lawmakers to prioritize crypto mining regulation despite earlier proposals to ban mining by the Central Bank. The fate of private miners remains uncertain, with various proposals including banning non-industrial mining and allowing power companies to prosecute private miners.
The new laws will require industrial miners to adhere to AML protocols and pay taxes on their earnings, but they will also gain official recognition as business operators. This will open up opportunities for domestic investment in what has become one of Russia’s fastest-growing business sectors. Some proposals have suggested a more lenient approach for private miners, allowing them to operate from home within fixed energy consumption thresholds. It is unclear whether private miners will be included in the current regulations or addressed in the future.
The State Duma is expected to pass a law on cryptocurrency mining in the coming days, with lawmaker Anton Gorelkin stating that the draft law will be fully adopted by the end of the current session. The legislation seeks to regulate and legalize the crypto mining industry in Russia, providing a framework for miners to operate within the legal boundaries. The industry has grown significantly in recent months, prompting the government to take action and provide clarity on the regulations surrounding crypto mining.
President Putin’s call for fast-tracking crypto mining regulation signals a shift towards embracing the industry and establishing clear guidelines for its operation. The focus on regulating the sector at the legislative level reflects a recognition of the importance of the crypto mining industry in Russia’s economy. With the potential legalization of industrial crypto mining, the sector is poised for further growth and investment, paving the way for a more structured and regulated environment for miners to operate.
