Russia seeks to legalize block reward mining with new bill

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Russia is mulling the legalization of digital asset block reward mining by 2023, local reports have revealed. A bill currently before parliament would also legalize selling mined digital assets on local and offshore trading platforms.

Russia has been delving deeper into digital assets in recent months. Earlier this month, the Central Bank of Russia published a report detailing its thoughts on the possible integration of digital assets into the country’s financial system. In October, a bill sponsored by the central bank and the Ministry of Finance unveiled proposals to allow block reward mining, although only in energy-rich regions.

As per a report by Moscow-based outlet Interfax, the latest bill wants to double down on block reward mining. However, the bill co-drafted by Anatoly Aksakov, the State Duma’s Financial Market Committee chair, and Deputy Speaker Alexei Gordeyev steers clear of digital asset payments.

Bill No. 237585-8 gives a definition of digital asset block reward mining, as well as mining pools.

“It is stipulated that requirements for the activities of individuals and legal entities that conduct digital currency mining, including participants of mining pools, will be established by the government of the RF in coordination with the Central Bank, while control [and] oversight over compliance with set requirements will be carried out by the federal government body authorized by the government of the RF,” the State Duma Financial Market Committee stated in its announcement.

Once mined, digital assets can be sold on offshore or local platforms “on the condition that Russian information infrastructure is not used in conducting transactions with it, with the exception of cases of transactions carried out in accordance with the established experimental legal regime,” the bill says.

As with most other governments, Russian authorities believe legalizing the industry will generate taxes for the government.

Aksakov, a long-time digital asset supporter in the Russian parliament, further stated that he believes the bill will offer more protection to investors.

The bill comes at a time when Russia has been considering turning to digital assets for international trade. With its invasion of Ukraine making it the world’s most sanctioned nation, Russia has been scrambling to find alternative payment methods to keep the economy running, and digital assets have emerged as a strong contender.

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