Russia Moves To Approve Mined Crypto Assets As Export Products
Russia’s Mined BTC Initiative
Russia raised an intriguing idea during a recent meeting led by Deputy Finance Minister Ivan Chebeskov. The Eastern European country is considering allowing crypto miners to label the digital coins they create as exportable goods.
If approved, this proposal will change the perception of Bitcoin mining worldwide. In addition, it may require developing an entirely new system to recognize and manage these activities globally.
According to Chebeskov, the ministry created a draft allowing miners to sell their crypto assets to other countries. Russia has adapted cues from gas export laws to create a crypto-mining version.
This new law being drafted is similar to how gas exports are managed. Experts note that it is another method of re-classifying the mined digital assets as a product that can be sold outside Russia.
Getting Official Recognition
In specific trial scenarios, the Bank of Russia and the Ministry of Finance support the use of cryptocurrencies for international transactions. They advocate for the crypto industry’s recognition as a legitimate part of the economy.
In line with the proposed legislation, crypto miners may gain access to virtual currencies via foreign systems or a dedicated platform set up for this trial period. Recall that Russia’s lower legislative house, the State Duma, issued preliminary approval to a different law that legalized crypto mining last year.
Although the law prohibits the widespread promotion of digital currencies to the general public, it establishes a system that allows miners to engage in crypto trading. However, it imposes restrictions on distributing such assets to the public.
In addition, it aims to establish a framework that recognizes and regulates cryptocurrency activities, balancing industry advancement with prudent oversight.
The Upcoming Crypto Mining Law
According to the proposed digital asset mining legislation, miners must transfer newly minted coins only through foreign exchanges and wallets. Furthermore, every transaction must be reported to Russia’s Federal Tax Service.
Anatoly Aksakov, chair of the State Duma’s Committee on Financial Markets, announced that the cryptocurrency mining law will go into effect in January 2024. However, Chebeskov’s statements suggest that, unlike previous attempts, the ministry is optimistic about the success of its new law.
Russia’s president, Vladimir Putin, officially approved a measure to digitize the country’s currency in July 2023. Due to this move, the Bank of Russia, the country’s central bank, was given authority to operate the digital ruble platform.
Thus, the central bank now has legal authority to manage the digital ruble. This step represents a significant shift in how Russia views and manages its digital currency ecosystem.
Recall that Russia has come under heavy international sanctions from the Western superpowers over its ongoing war against Ukraine. Therefore, the country has been exploring ways to leverage the digital economy to stabilize its economy, which the trade embargo has hurt.
The international community has raised concerns over Russia’s use of cryptocurrency to fund its ongoing military offensive in Ukraine. Thus, it is no surprise that the country is taking strides to ensure seamless financial transactions by making laws incorporating crypto assets into its economy.
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