Russian cryptocurrency industry leaders and business executives have collaborated to draft a bill aimed at legalizing crypto mining in the country.
Alexander Brazhnikov, Executive Director of the Russian Association of Cryptocurrency and Blockchain (RACIB), revealed the initiative at a cryptocurrency event on March 22, according to ComNews. However, the draft seeks to formalize the framework for crypto mining activities, which are currently operating in a regulatory gray area in Russia.
Brazhnikov noted that after discussions with regulators, RACIB was encouraged to propose ideas for the mining bill themselves. Consequently, draft regulation proposals have been sent to the Ministry of Energy, the Ministry of Economic Development, and Rosfinmonitoring, Russia’s anti-money laundering agency. The Ministry of Finance is also expected to review the proposals.
Industry Support and Government Engagement
The move comes after previous attempts to legalize the sector, with a bill failing to progress in the Duma in 2022. However, the latest efforts have garnered the support of State Duma lawmakers Anton Tkachev, Vladimir Plyakin, Grigory Shilkin, and Sardana Avksentyeva. According to the bill, over 12 million cryptocurrency wallets have been opened by Russian citizens, holding a combined total of $108 billion worth of coins.
The bill aims to secure an official classification for mining as a form of economic activity, which would allow for the taxation of crypto-mining operations. Additionally, it proposes the creation of an experimental legal sandbox for the centralized conversion of digital assets obtained as a result of mining, indicating interest in a state-run crypto exchange for miners and firms using crypto in cross-border trade.
RACIB’s efforts also include promises of investment in new multi-purpose data centers, potentially aiding government tech development plans and solidifying a safe operational future for companies in the Russian crypto mining industry.
