Lawmakers from the Liberal Democratic Party of Russia are gearing up to introduce a draft law designed to regulate crypto mining. The nationalists say the legislation will benefit both Russian citizens and the state, as well as those who want to get involved in the business legally.

Nationalists Propose Regulations for Russian Crypto Miners

The popularity of cryptocurrencies, rising with their market value, has drawn the attention of the nationalist faction in the State Duma, the lower house of Russian parliament. “Unsecured” bitcoin is now trading at $68,000 per coin, one of its members, Andrey Lugovoy, noted in comments to local media this week, adding:

If three years ago someone invested 1 million rubles, they would now have 5 billion.

The deputy revealed that his Liberal Democratic Party of Russia (LDPR) is going to file a draft law on the regulation of cryptocurrency mining. Digital coin minting has also expanded in the vast and energy-rich country where it still develops in the absence of comprehensive government rules for the sector.

The profitability of mining has enticed many companies and ordinary Russians to join the industry. Lugovoy believes it’s time to regulate crypto mining through the adoption of new legislation. Quoted by the Regnum news agency, the lawmaker stated:

We cannot rush left and right. We should either strictly prohibit it, adjusting the law enforcement system [accordingly], although I don’t really understand how this could be done, given that this is a virtual reality, as they say. Or, let’s permit it.

The nationalist insists that the latter solution will provide protection for Russian citizens, simplify taxation, ensure transparency, and allow the state to exert control over the sector while increasing budget receipts. At the same time, entrepreneurs will get an opportunity to conduct business legally, the parliamentarian elaborated.

Andrey Lugovoy also remarked that the implementation of regulatory norms is especially relevant for regions with abundant energy resources such as Irkutsk Oblast, which maintains low electricity rates. The cheap energy available there and in other parts of the country attracts many cryptocurrency miners, the lawmaker pointed out.

Cryptocurrencies have been only partially regulated in the Russian Federation with the law “On Digital Financial Assets” which went into force in January. While it introduces rules for related activities such as “digital currency issuance,” it does not explicitly mention cryptocurrency mining.

The idea of recognizing mining as an entrepreneurial activity has been gaining support in government circles and officials in Moscow say the move would allow authorities to properly tax miners’ profits. In September, this approach was backed by the chairman of the important Financial Market Committee at the Duma, Anatoly Aksakov, who revealed that mining is likely to be affected by a number of upcoming legal amendments during the fall session.

Do you think the State Duma will adopt the crypto mining legislation proposed by Russian nationalists? Tell us in the comments section below.

Bitcoin News
Mining, Andrey Lugovoy, bill, Bitcoin, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deputy, draft law, Duma, House, Law, lawmaker, lawmakers, LDPR, mining, nationalists, parliament, party, Regulation, Regulations, rules, Russia, russian, State Duma

shutterstock 659324809 1 1U2yg5

New Cryptocurrency Bill Advances to Senate in Brazil

A new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress last week, and is now awaiting review by the Senate for approval. The project, if ...
Read More
shutterstock 2041962896 6krKZj

USDC Sees Native Launch on Avalanche

USDC, the second leading stablecoin by market cap, has been launched on the Avalanche blockchain as a native token. Previously, users wanting to get USDC in Avalanche had to bridge ...
Read More
zztidodf pkpJUN

Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs

On December 16, the blockchain-based lending platform Nexo announced the firm has launched a non-fungible token (NFT) lending desk. While the company offered crypto-backed loans using tokens like bitcoin and ...
Read More
ffffffadidas VCTXpR

Adidas Reveals the Originals NFT Collection With Punks Comics, Gmoney, Bored Apes

On Thursday, the German multinational corporation Adidas announced the launch of the company’s first Adidas Originals NFT collection. The Adidas Originals NFT drop is in partnership with the Bored Ape ...
Read More

Lending Platform Ledn Launching Bitcoin-Backed Mortgage Product, Raises $70 Million

Global digital asset savings and credit platform Ledn has announced the upcoming launch of a bitcoin-backed mortgage product, calling it “the first product of its kind to hit the market.” ...
Read More
Share with Others