Policymakers in Russia postpone debating cryptocurrency mining bill

The Russian Parliament is delaying the passing of the recently proposed crypto mining bill, citing capital flight risks.   

Regulation on crypto mining stalled over capital flight fears

Despite initial manifestations to the contrary, Russian legislators will consider drafting the law on virtual currency mining in 2023 rather than in December 2022. As a result of sanctions that are preventing Russia from accessing international markets and finances, the bill is anticipated to establish regulations for the retrieval and sale of cryptocurrencies in Russia

In a statement from the Chairman of the Financial Market Committee of the State of Duna, the lower house, Anatoly Aksavov, stated that the crypto mining bill is being halted over concerns that it could lead to capital and market drawdowns.  

The senior lawmaker clarified that additional authorizations are required for the pending bill. He has already been actively engaged in the regulation of Russia’s cryptocurrency market. Most probably, he was referring to balancing the numerous regulatory agencies.

Debate on broadening  the prevailing legislative

Reports suggest that the bill introduced in the Russian Parliament’s house of representatives in November proposes to amend the current rules in Virtual Financial Assets operations. The latter took effect in January 2021 and only partly regulated cryptocurrency-related activities. With Russia’s comparative edge in lower power consumption and a cool climate, mining is growing as a sector and becoming a significant source of supplementary earnings for several beginner miners, particularly in the nation’s power-rich territories.

Russian government entities have debated broadening the overall legislative framework to include cryptocurrency-related transactions all year. Whereas most authorities oppose enabling the unrestricted circulation of bitcoin and comparable digital currencies within Russia, their use for cross-border payouts amid financial limitations brought on by the Ukraine conflict has gained much support. Punishments have also had an impact on the mining industry.

The mining law was originally turned down by the Duma’s legal department, which asserted on first consulting with the Russian Central Bank. The monetary authority, which has taken a staunch standpoint against cryptocurrency, endorsed the memorandum on the circumstance that the minted coins be sold overseas or swapped for fiat under only special legal regimes in the Soviet Union.