According to foreign media reports, the Russian State Duma has passed a bill legalizing Bitcoin mining and allowing the use of cryptocurrencies for international trade. The bill was initially introduced last year and is expected to take effect on September 1, pending final approval from the federal government.
This new law aims to address the challenges faced by Russian banks due to regulatory restrictions and international sanctions. International sanctions have significantly disrupted Russia’s trade relationships with major partners including China, India, the United Arab Emirates, and Turkey, with local banks becoming increasingly cautious under Western pressure.
The new law establishes a comprehensive regulatory framework, setting requirements for individuals and legal entities (including mining pool participants) engaged in digital currency mining, ensuring tax compliance and preventing illegal activities. The Russian government and Russian banks will be responsible for regulating this area, seeking to legalize cryptocurrency mining activities and ensure the declaration of income and payment of taxes. Compliance with established requirements will be supervised by the Ministry of Digital Development. The government may also prohibit mining activities in certain regions or individual territories.
In addition to direct regulations on mining activities, the bill also allows for the sale of mined cryptocurrencies without using Russian information infrastructure, exempting these transactions from domestic currency regulatory laws. However, the bill still prohibits the use of cryptocurrencies for payments in the domestic market.
To control the proliferation of digital currencies domestically, the bill also includes a ban on cryptocurrency advertisements. Furthermore, Russia is considering official legalization of stablecoins for international trade, in order to simplify cross-border payments for Russian companies facing ongoing sanctions.
On the other hand, the Russian Ministry of Finance recently proposed allowing traditional exchanges to handle digital asset transactions for selected investors, outlining potential regulations for organized digital currency trading based on exchange licenses in a government draft response.