Russian Central Bank and Ministry of Finance Agree to Regulate Domestic Bitcoin Mining

Russia regulates domestic crypto mining. (Photo; Doc. FintechFi)

JAKARTA – Bitcoin (BTC) mining has become a topic of discussion by Russian financial authorities. In this case the Central Bank of Russia (CBR) and the Ministry of Finance. Both parties agreed to regulate Bitcoin mining activities in the country.

In recent years, Bitcoin mining activity has grown rapidly in this resource-rich country. This mining activity is carried out by industry and ordinary users who expect profit or additional sources of income.

Anatoly Aksakov, chairman of the parliamentary Financial Markets Committee, announced during the Kazan Digital Week forum stating that a draft law introducing rules for this sector will soon be submitted to the lower house of the Russian parliament, the State Duma.

"In the near future, the bill will appear in the State Duma, we will work to pass it faster," he said, quoted by RBC Crypto.

Russian MPs also gave their own views on this issue. Aksakov believes that cryptocurrency mining should be allowed only in areas with abundant energy resources and prohibited in areas experiencing energy shortages.

Earlier in September, Prime Minister Mikhail Mishustin asked the CBR, the Ministry of Finance, Rosfinmonitoring, the Russian financial watchdog, the Federal Tax Service, and the Federal Security Service to outline a joint position on a draft federal law governing the issuance and circulation of digital currencies, including mining. and their use in international settlements.

The head of the Russian government also ordered the Ministry of Finance, with the participation of the Bank of Russia, to submit a consensus proposal for the development of a digital financial asset market (DFA), including the implementation of decentralized technology, by December 1.

Both regulators should update the Strategy for the Development of Russian Financial Markets Until 2030. The document should be revised taking into account President Vladimir Putin's instructions and the current geopolitical situation, according to Mishustin on September 13. He also stressed that under current conditions, the use of DFA will contribute to ensuring uninterrupted import and export payments.

CBR and the Ministry of Finance had disagreements over crypto regulations. The Central Bank wants to implement a complete ban on cryptocurrencies, while the Ministry of Finance wants to regulate it. However, now both parties agree that cryptocurrencies are needed by countries to face economic sanctions imposed by the European Union and the US.

In addition, Moscow officials also agreed that Russia should be able to take advantage of its advantages in the cryptocurrency mining industry, which is also under the spotlight of President Vladimir Putin. Russia has areas that are rich in renewable energy and that can be used for crypto mining.