Russia Plans to Mine Crypto

The Bank of Russia is reportedly developing a bill that would introduce an “experimental legal regime” for cryptocurrencies solely in export-import transactions, according to the head of the regulatory agency, Elvira Naiullina. Naiullina confirmed that crypto trading and payments within the country will remain banned. However, Russia’s government is also drafting a bill to establish a national agency that would supervise and license crypto platforms operating in the country. The new bill will also introduce a tax code for miners as part of the regulation.

The central bank is planning to establish unique organizations that will mine crypto and handle cross-border trade deal payments, Nabiullina informed a parliamentary fraction of the “New People” political party. It is not clear what the organizations would look like. Digital assets created within Russia in accordance with the 2020 law can also be used in cross-border transactions, Nabiullina added. The Bank of Russia is currently discussing with the government which organizations can participate in the experiment, their business models, and the banks they will use. According to Nabiullina’s deputy, Alexey Guznov, government-sponsored firms are likely to be involved in the initial phases of the trial.

The Bank of Russia and the Ministry of Finance have previously acknowledged that Russia cannot avoid using cryptocurrency payments during the current situation due to international sanctions, which prohibit the country from using the U.S. dollar-based global payment infrastructure. According to local newspaper Vedomosti, Sergei Altukhov, a member of the Russian parliament’s economic policies committee, announced that the government is drafting a bill to create a national agency to supervise and license cryptocurrency platforms operating in Russia.

In conclusion, the Bank of Russia’s planned “experimental legal regime” for cryptocurrencies will only apply to export-import deals. Meanwhile, the government is drafting a bill to supervise and license cryptocurrency platforms operating in Russia, which includes a tax code for miners. Russia has been compelled to employ cryptocurrency payments as a result of international sanctions preventing it from using global payment infrastructure based on the US dollar.