Russian Crypto Industry Proposes Draft Mining Bill to Government
Russian crypto industry leaders and business executives have come together to create a draft bill aimed at legalizing the country’s thriving mining sector. Alexander Brazhnikov, the Executive Director of the Russian Association of Cryptocurrency and Blockchain (RACIB), revealed the details of the bill at a recent crypto-related event. He stated that after discussions with regulators, it became clear that waiting for their proposals on a mining bill was not ideal, so the industry took matters into their own hands by proposing their own ideas. RACIB has sent letters to various ministries, including the Ministry of Energy and the Ministry of Economic Development, with draft regulation proposals. They also plan to send the draft bill to Rosfinmonitoring, the anti-money laundering agency, and invite the Ministry of Finance to consider their proposals.
The Russian crypto industry has faced numerous challenges in their attempts to legalize their operations, but they are hopeful that this latest effort will gain more traction. The proposed bill has already garnered support from State Duma lawmakers, which is a positive sign. The bill highlights that Russian citizens currently hold more than 12 million cryptocurrency wallets, with a combined total value of $108 billion. It also emphasizes the nation’s significant mining capacity, which is currently operating in an unregulated “gray” zone. The lack of regulation poses risks for legitimate businesses that want to conduct transactions with cryptocurrencies, as they could face criminal prosecution.
This draft bill signifies the industry’s ongoing efforts to gain recognition and support from the government. In November 2023, RACIB formed a working group comprising government representatives, energy industry insiders, and members of the mining community to develop crypto mining policies. The group has now presented their draft bill, and mining companies have offered incentives to the government, such as access to new data centers that would save millions of dollars in tech development plans. The industry’s main objective is to have mining officially recognized as a form of economic activity, allowing for taxation and the secure expansion of operations.
However, there are still potential stumbling blocks, as Moscow is currently prioritizing the development of its central bank digital currency (CBDC) project. Some believe that this focus may overshadow efforts to legitimize the crypto industry. Financial advisor Elena Savina noted that it is crucial to consider the state’s current priorities when pushing for regulation. Despite this, the industry remains hopeful that their proposals will be seriously considered and mark a positive step forward for the Russian crypto mining sector.