Russian Crypto Bill Amendment Targets Mining, Trading
The Russian Ministry of Finance stated Friday that it has updated its digital currency bill to include bitcoin mining provisions.
In February, the ministry presented the Russian Parliament with the initial proposed cryptocurrency law, which focused on digital assets as investment vehicles. According to the ministry, the new version of the bill clarifies the restrictions for dealing and mining cryptocurrency.
The bill, dubbed “On Digital Currency,” is being considered as interest in the Russian government’s use of cryptocurrencies grows during the ongoing war in Ukraine, which began on February 24 when Russia invaded the country.
Russia’s central bank proposed a cryptocurrency mining ban in January, expressing fears that digital assets could jeopardize financial stability.
Early in February, rumors circulated that Russia was planning a state-sponsored digital ruble, its own central bank digital currency.
In response to US economic sanctions, Russia’s main lender, Sberbank, was granted a license by the country’s central bank to begin creating digital assets in March. Sberbank announced that assets released on its digital platform will be recorded and disseminated via a distributed ledger technology system, which will provide “data security” and “data immutability.”
The license would allow Russian businesses to create their own digital assets and use digital assets issued through the bank’s information system, as long as they can verify they have the necessary capital. Concerns about how Russian organizations may be utilizing cryptocurrencies to circumvent sanctions grew as the news broke.
According to a report from Russian news site Kommersant, the modified version of “On Digital Currency” adds the notions of professional and non-professional digital asset transactions. The paper also mentions the necessity to evaluate cryptocurrency items, trading restrictions, and mining.