The legislation provides a legal definition for the extraction of digital currencies and envisages the establishment of a register for miners.
The draft of the new federal law “On Mining in Russian Federation” has been submitted to the Duma on Friday, April 29, according to the website of the house. The bill aims to bring the crypto-related industry out of the “grey” economy in Russia, a country rich in energy resources and favorable climatic conditions for mining.
The authors of the bill describe the minting of digital coins as an activity using information infrastructure and equipment located in the Russian Federation, which results in the creation of digital currency. They also introduce legal definitions for the circulation of digital currencies, mining pools and operators mining facilities.
The law provides for the creation of a special register for cryptocurrency miners that will be maintained by an authorized federal body. Private individuals involved in bitcoin mining will be able to register as individual entrepreneurs or self-employed persons if their electricity consumption exceeds certain limits set by the government.
Only registered entities and persons will be allowed to mine, RBC Crypto reported, quoting the document. The operators of mining facilities in Russia will be required to keep records of the minted cryptocurrencies, their types, any contracts with other entities and buyers of the coins, exchange operators, payment systems, and banks.
If deputies in the Duma adopt the law, a one-year “amnesty” will be announced for registered miners, within which they will be able to sort out any outstanding issues with customs clearance for imported hardware, pay relevant taxes and comply with applicable regulations. That includes the recently adopted rules for money transfers outside the Russian Federation.
Russian authorities have been working to develop a comprehensive regulatory framework for cryptocurrencies. A bill “On Digital Currency” has been prepared by the Finance Ministry to fill the legal gaps remaining after the enforcement of the law “On Digital Financial Assets” last year. The department recently revised the draft to clarify certain aspects pertaining to crypto mining. The Russian parliament is expected to approve this law, along with tax amendments, during its spring session.