The Central Bank of Russia agrees to legalize cryptocurrency mining, provided that revenues from its activities are converted to fiat outside Russia. Regulators’ latest views on this issue are after softening their stance on the possibility of using cryptocurrencies for payments, even internationally.
Central Bank of Russia accepts legalization of cryptocurrency mining
Moscow financial authorities are ready to help legalize cryptocurrency mining, provided that Russian miners are obliged to sell coins acquired abroad. This is due to a recent statement by Kirill Pronin, Head of Financial Technology at the Central Bank of Russia.
The central bank is the voice of hardliners in the ongoing debate about the future of Russian cryptocurrencies, suggestion Total ban on most related activities earlier this year, including mining. However, its position began to change as it faced opposition from other government agencies and had to deal with the financial restrictions imposed on the war in Ukraine.
Governor Elvira Nabiullina Shown If you don’t “penetrate” the Russian financial system last month, you can allow cryptocurrency payments. At the same time, she argued that digital currencies like Bitcoin should not be traded on Russian platforms. These assets are too volatile and risky to potential investors.
In a speech at the St. Petersburg International Legal Forum this week, Pronin said mining would not be the responsibility of the Central Bank of Russia ().CBR), It is one of the ways to get cryptocurrency in the form of fees for verification of cryptocurrencies executed by miners. “We can discuss the legalization of the mining industry, but in our opinion, some conditions must be met in this regard,” he said by Interfax.
Ivan Chebeskov, director of the Treasury’s financial policy department, points out that some large cryptocurrency mining companies based in the Russian Federation are also forced to deal with foreign regulations when withdrawing funds. Did. He suggested that Russia may need to create its own exchange infrastructure to provide liquidity to the industry.
However, Kirill Pronin reiterated that, according to the CBR, cryptocurrencies coined by Russian miners should not be sold outside the border and stored domestically. The important thing is not to create incentives for subsequent domestic payments.
In addition to a new bill, “About Digital Currencies,” which is expected to comprehensively regulate Russia’s crypto space, a dedicated bill, “About the Mining Industry of the Russian Federation,” was submitted to the House of Representatives in April. A member of the House of Representatives of the Russian Parliament proposes to recognize cryptomining as a business activity using Russian information infrastructure and domestic equipment.
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