Russian Lawmakers Moving Towards Legalizing Industrial Crypto Mining Sector, Imposing Regulations on Private Miners
Russian lawmakers are on the brink of a major decision that could reshape the country’s crypto mining landscape. The State Duma is set to discuss a new mining law that would legalize industrial crypto mining while imposing strict regulations on smaller, private miners operating from home.
Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy, confirmed the upcoming discussions, highlighting the need to differentiate between large-scale industrial mining activities and smaller private endeavors. This move is part of Russia’s efforts to integrate crypto operations within its national regulatory system, particularly focusing on international trade and industrial mining.
The proposed legislation would also impact crypto exchanges, with most being prohibited from operating in the country. However, exemptions would be made for businesses under the Central Bank’s regulatory sandbox, particularly international trading companies using cryptocurrencies for global transactions. Industrial miners would have access to Moscow-regulated exchanges but would be restricted to selling their tokens.
In a bid to address energy consumption concerns, the new law would require industrial miners to provide reports on their activities to Rosfinmonitoring, Russia’s anti-money laundering body. Small-scale miners adhering to government-established energy consumption limits could engage in coin mining without special permits, although specific caps have yet to be defined.
The legislation also aims to enhance local authority and address grid pressure, with provisions allowing the government to prohibit mining in specific areas where power grids are strained. Despite these measures, legal experts in Russia are divided on the draft law’s prospects, with some criticizing its quality and calling for significant revisions before it can be considered for a vote.
Amidst these developments, Russia is actively advancing its Central Bank Digital Currency (CBDC), the digital ruble, with a structured rollout plan in place. The digital ruble, signed into law by President Vladimir Putin in mid-2023, aims to enhance payment convenience for users both online and offline. The pilot phase is underway, with a wider rollout expected between 2025 and 2027 after thorough testing and infrastructure refinement.
As Russia navigates the complexities of regulating crypto mining and advancing its CBDC, the outcome of the upcoming legislative discussions could have far-reaching implications for the country’s crypto industry and its position in the global market.
