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Russia Could Legalize Crypto Mining By Jan 1, 2023 – As Long As It Happens

Source: Alexei Novikov/Adobe

Russia may finally legalize crypto mining — after the government’s chief architect of crypto legislation announced the rollout of a bill that could come into force on January 1, 2023.

Talk to RIA Novosti, the head of the State Duma’s Financial Markets Committee, Anatoly Aksakov, said the bill would be read in parliament next month. There, it would have to be approved by the deputies who have already rejected a similar proposal.

The bill is expected to pass both a first and a second reading, but Aksakov estimated that both readings could take place in December “because we expect the bill to come into force on January 1, 2023.”

A previous attempt to legalize crypto mining earlier this year failed after being rejected by MPs. Critics of this bill claimed that it was rushed and lacking in many areas.

But this bill may well be different. The previous proposal was launched by a group of opposition MPs. And while the new bill is not directly sponsored by the government, the fact that figures like Aksakov were instrumental in drafting it will likely ease its passage through the Duma.

Aksakov said the bill would be shown to deputies in the chamber today. Votes should be scheduled in the coming weeks.

However, he also seemed to indicate that a number of compromise measures have been incorporated into the terms of the bill. The crypto-skeptical central bank remains staunchly opposed to crypto adoptionand said he would prefer a Chinese-style total ban.

As a result, the bill appears to propose allowing companies to conduct crypto mining operations on Russian soil – as long as they don’t let the coins they mine into the Russian economy.

Russia will create a crypto-mining “pool”

The bill also proposes, Aksakov explained, the creation of a “pool” of licensed “individual” and “industrial” miners. This pool will be regulated by government appointed bodies.

As such, tokens obtained through mining would be “subject to sale without the use of Russian [financial] infrastructure,” explained the MP. But Aksakov added that Moscow also wanted to create a sandbox in which “transactions” could be conducted “under an experimental legal system”.

Firms working in the sandbox would be allowed to conduct crypto-related transactions in Russia, but only under strict regulatory oversight.

The details of this sandbox, he said, would be included in a second bill – to be introduced at a later date.

A number of Russian ministries want to start taxing crypto miners, while a number of key energy companies have said they want to start taxing crypto miners. use their resources to mine tokens.

Aksakov said:

“Passing a mining law will bring this form of activity into the legal sector. […] It will also help strengthen the comprehensive regulation of issues related to the issuance and circulation of digital currencies. [in Russia].”

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