Russian lawmakers pass bill legalizing Bitcoin mining, crypto payments for international trade (2024)

The Russian State Duma passed a bill legalizing Bitcoin mining and allowing the use of crypto for international trade.

The bill, which was first introduced a few years ago, is expected to take effect on Sept. 1, pending final approval from the federation.

Based on local reports, the vote tally from the session was conclusive, with 404 votes in favor, representing 89.8% of the total. No members voted against or abstained from voting.

The new legislation is designed to address the challenges faced by Russian banks due to regulatory constraints and international sanctions.The sanctions have significantly disrupted Russia’s trade relations with key partners, including China, India, the United Arab Emirates, and Turkey, as local banks have become increasingly cautious under Western pressure.

Mining regulation

The law establishes a regulatory framework to oversee crypto mining activities, ensure compliance with tax regulations, and prevent illicit operations. One key feature of the bill is the authorization of Bitcoin mining.

Drafted by Deputy Anatoly Aksakov and other lawmakers, the legislation mandates that mining activities be regulated by the government and the Bank of Russia, with a federal authority ensuring compliance.The initiative aims to bring mining activities out of the shadows and ensure that income is declared and taxes are paid.

In addition to regulating mining, the bill allows the sale of mined crypto without utilizing Russian information infrastructure, exempting these transactions from domestic currency regulation laws. However, the use of cryptocurrencies for domestic payments remains prohibited in Russia.

The legislation also includes a ban on crypto advertising intended to control the spread of digital currency usage within the country.

Rising acceptance

While crypto remains prohibited for domestic payments, the bill marks a notable shift in Russia’s approach to digital assets and currencies. The legislation aims to enhance Russia’s trade relations and challenge global regulatory norms.

Russia is also considering the official legalization of stablecoins for international transactions to simplify cross-border payments for Russian companies amid ongoing sanctions. The central band is actively discussing proposals to permit the use of these crypto-assets, which are pegged to stable currencies or assets like the US dollar or gold, making them less volatile than other cryptocurrencies.

Meanwhile, Russia’s Ministry of Finance recently proposed allowing traditional exchanges to handle digital asset trading for select investors. A government draft response outlined the possibility of creating special regulations for “conducting organized trading in digital currency, recognized as a commodity, on the basis of an exchange license or a trading system license.”

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.