Russia Suggests Exporting Mined Cryptocurrencies: A New Era?

• Russian Proposal Could Classify Cryptocurrency Mining as Export Activity
• Cryptocurrency Mining and Export Law
• Cryptocurrency Mining as a Product of Activity
• Legalizing Cryptocurrency Mining
• Regulations and Compliance
• Projected Timeline for Mining Regulations

Russian Proposal Could Classify Cryptocurrency Mining as Export Activity

A new proposal is under consideration by the Russian government to classify cryptocurrency mining as an export product. This plan was unveiled by Ivan Chebeskov, the Deputy Finance Minister, during a roundtable discussion at a recent Cryptocurrency and the Future of Digital Finance event.

Cryptocurrency Mining and Export Law

Chebeskov revealed that a draft legislation is being formulated, drawing inspiration from existing rules governing natural gas exports. This new legislation would allow miners to directly sell the cryptocurrencies they generate to overseas buyers as an export product.

Cryptocurrency Mining as a Product of Activity

There is an option and a bill to use the export of cryptocurrency as a product of mining activity, stated Chebeskov. Both the Ministry of Finance and Russia's central bank have concurred on recognizing cryptocurrency mining as a formal industry and enabling settlements utilizing digital currencies in foreign trade.

Legalizing Cryptocurrency Mining

A separate bill focusing on the legalization of cryptocurrency mining sailed through the first reading in Russia's lower house, the State Duma, during the previous year. The bill outlines a framework allowing miners to sell cryptocurrencies while banning the unrestricted advertising of digital currencies.

Regulations and Compliance

The legislation prescribes that miners can only engage with foreign-based exchanges and wallet platforms when transferring freshly minted coins. Additionally, all transactions must be reported to the Federal Tax Service.

Projected Timeline for Mining Regulations

Anatoly Aksakov, the head of the State Duma's Financial Market Committee, anticipates that the new mining regulations could potentially come into effect sometime in 2024. However, this timeline is subject to change based on continued discussions and further revisions to the proposal.

Edited by Jonathan Stoker