Bitcoin
Russian lawmakers approve bill legalizing Bitcoin mining and crypto payments for international trade
The Russian State Duma has approved a bill that legalizes Bitcoin mining and allowing the use of cryptocurrencies for international trade.
The bill, which was first introduced a few years ago, is due to come into effect on September 1, pending final approval by the federation.
Based on local reports, the vote count from the session was conclusive, with 404 votes in favor, representing 89.8 percent of the total. No member voted against or abstained from voting.
The new legislation was designed to address challenges faced by Russian banks due to regulatory restrictions and international sanctions. The sanctions have significantly disrupted Russia’s trade relations with key partners including China, India, the United Arab Emirates and Turkey, as local banks have become increasingly cautious under Western pressure.
Mining regulation
The bill establishes a regulatory framework to oversee cryptocurrency mining activities, ensure compliance with tax regulations, and prevent illicit operations. A key feature of the bill is the authorization of Bitcoin mining.
Drafted by MP Anatoly Aksakov and other lawmakers, the legislation mandates that mining activities be regulated by the government and the Bank of Russia, with a federal authority ensuring compliance. The move aims to bring mining activities out of the shadows and ensure that income is declared and taxes paid.
In addition to regulating mining, the bill allows the sale of crypto mined without using Russian information infrastructure, exempting such transactions from domestic currency regulation laws. However, the use of cryptocurrencies for domestic payments remains prohibited in Russia.
The legislation also includes a ban on advertising cryptocurrencies, with the aim of controlling the spread of the use of digital currency in the country.
Growing acceptance
While cryptocurrency remains banned for domestic payments, the bill marks a notable shift in Russia’s approach to digital assets and currencies. The legislation aims to enhance Russia’s trade relations and challenge global regulatory norms.
Russia is also considering officialization legalization of stablecoins for international transactions to simplify cross-border payments for Russian companies amid ongoing sanctions. The central bank is actively discussing proposals to allow the use of these crypto assets, which are pegged to stablecoins or assets such as the US dollar or gold, making them less volatile than other cryptocurrencies.
However, the Russian Ministry of Finance recently proposed allowing traditional exchanges to handle digital asset trading for selected investors. A draft government response outlined the possibility of creating special regulations for “conducting organized trading in digital currency, recognized as a commodity, on the basis of an exchange license or a trading system license.”