Policymakers in Russia postpone debate on cryptocurrency mining bill

The Russian parliament is delaying the passage of a recently proposed crypto mining bill, citing capital flight risks.

Regulation on crypto mining stalled by capital flight fears

Despite initial expressions to the contrary, Russian legislators will consider drafting a law on virtual currency mining in 2023 instead of December 2022. sanctions Those blocking Russia from accessing international markets and finance, the bill is expected to establish rules for the recovery and sale of cryptocurrencies in Russia

In a statement by the Chairman of the Financial Market Committee of Duna State, the lower house Anatoly Aksavov said that crypto mining bill is being restrained due to concerns that it may lead to capital and market collapse.

The senior legislator clarified that the pending bill required additional authorisation. He is already actively engaged in the regulation of Russia cryptocurrency Market. He was probably talking about balancing multiple regulatory agencies.

Debate on broadening existing legislation

Reports suggest that a bill introduced in the House of Representatives of the Russian parliament in November proposes amendments to existing regulations on virtual financial assets operations. The latter came into effect in January 2021 and only partially regulated cryptocurrency-related activities. With Russia’s comparative advantage in low electricity consumption and cold climate, mining is growing as a sector and becoming an important source of supplemental income for many early miners, especially in power-rich areas of the country. .

Russian government bodies debate broadening overall legislative framework to include cryptocurrency-related transactions Whole year. While most authorities oppose enabling unrestricted circulation of bitcoin and comparable digital currencies within Russia, there has been much support for their use for cross-border payments amid financial constraints brought on by the Ukraine conflict. The penalty has also had an impact on the mining industry.

The mining law was originally rejected by the legal department of the Duma, which insisted on consultation with the Russian Central Bank first. The monetary authority, which has taken a firm stand against cryptocurrency, has backed it memo In this situation coins minted in the Soviet Union only under special legal arrangements are sold abroad or exchanged for fiat.

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