Russia’s Ministry of Finance is contemplating exporting cryptocurrencies produced from mining activities taking place within the country’s borders.
According to the ministry, the export mechanism for cryptocurrencies would work similarly to how the country exports its natural gas.
Russian Miners To Sell Crypto
According to reports, Russia’s Deputy Minister of Finance, Ivan Chebeskov, discussed the possibility of allowing Russian miners to sell cryptocurrency during the round table on “Cryptocurrency and the future of digital finance.” Speaking to Russian media outlets, Chebeskov stated,
“There is an option and a bill – to use the export of cryptocurrency as a product of mining activity. That is, there is special legislation for the export of gas. For example, using this example, we developed a concept, a project so that a miner could export the product of what he mined, that is, cryptocurrency, as an export product. Such a legislative initiative is also being formed in our country”.
Mining activity in Russia has picked up as several miners moved to the country thanks to abundant resources and significantly cheaper electricity costs. Chebeskov added that Russia’s Ministry of Finance and the Bank of Russia share the same stance, acknowledging cryptocurrency mining as an industry. Furthermore, they are also looking at exploring the feasibility of conducting settlements in crypto when it comes to foreign economic activity on an experimental basis.
What About Crypto Use?
Lawmakers in Russia introduced a bill that sought to legalize cryptocurrency mining to the State Duma in November 2022. The legislation outlined the process through which miners could sell cryptocurrency mined in Russia. It also outlined strict regulations on the advertising and offerings of cryptocurrency. The bill also proposed allowing the sale of mined crypto assets on foreign platforms without utilizing Russian information infrastructure.
Miners have also been allowed to acquire cryptocurrency through foreign systems and sources that adhere to international regulations. Alternatively, they can also acquire cryptocurrencies through a dedicated platform established as part of an experimental initiative.
However, in both situations, miners must report transactions that involve the sale of cryptocurrencies to the Federal Tax Service. Additionally, the Central Bank has said that selling mined crypto is permitted exclusively using foreign information infrastructure and only to non-residents.
The head of the State Duma Committee on the Financial Market, Anatoly Aksakov, had hinted in the summer of 2023 that a comprehensive bill around cryptocurrency mining could come into effect in 2024, with efforts to refine the regulations underway. Russia has come under several sanctions following the Ukraine invasion. The country has dithered on its crypto policy and has yet to legalize the use of digital currencies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.