The State Duma has taken a major step towards legalising cryptocurrency mining in Russia by passing a bill in its first reading. The Duma Committee on Financial Markets chairman, Anatoly Aksakov, led a group of deputies who introduced the law, which lays out the requirements and process for mining virtual currencies in Russia.
A report said that this regulation is intended to prevent digital currency from being utilised in illicit transactions by reducing the risks connected to illegal mining activities and related offences.
A Bill To Push The Mining Industry Forward?
Member of the Budget and Taxes Committee Nikita Chaplin emphasised that the law will draw investment, boost the growth of the mining sector, and generate employment. He mentioned that some 54,000 bitcoins, worth more than $3.5 billion, were mined by miners in Russia last year.
Participants in mining pools as well as people and legal entities engaged in digital currency mining will be subject to the new legislation’ obligations. These specifications will be decided by the Russian government and the Bank of Russia. The Ministry of Digital Development will oversee compliance, and mining operations in particular areas or territories may be prohibited by law.
This legislative change is expected to increase the demand for cryptocurrencies in Russia, helping the country bypass international sanctions and maintain trade flows through the use of digital currencies. This strategy is similar to Iran’s, which despite sanctions uses bitcoin mined locally for cross-border transactions. With cryptocurrencies playing an increasingly critical role, Russia’s economic landscape is set to transform.
Will More Country Follow Suit?
Russia is now joining the likes of the United States, China, and Turkey, who have already included digital currencies in their banking systems. The Russian parliament’s adoption of this cryptocurrency measure is further evidence of the world’s growing acceptance of cryptocurrencies.
The United States, however, has difficulties since it might try to retaliate against Russia’s actions. Politicians in the United States are gradually renouncing their anti-crypto positions, especially in light of the impending elections that will further complicate matters.
This development is noteworthy since it runs counter to previous reports that Russian President Vladimir Putin is skeptical of Bitcoin. But it appears that the President has finally come to understand the importance of digital currency. Russia’s move to approve cryptocurrencies for use in foreign trade is historic.