The Russian Senate has approved a draft law on crypto mining, which means that the groundbreaking legislation will now become law, subject to President Vladimir Putin’s signature.
Nevertheless, some Russian Bitcoin (BTC) producers have expressed their enthusiasm for the news, while others remain uncertain about the development.
The Federation Council has authorized the mining law and an additional measure regarding “experimental foreign trade settlements” in cryptocurrency, according to Vedomosti.
The mining law will permit both “legal entities” (industrial mining firms) and “sole proprietors” (individual miners) to mine crypto, provided that they register with a national registry.
The announcement of the law will be a significant source of relief for small-scale home-based miners. Individuals will be permitted to mine tokens as long as they adhere to “energy consumption limits established by the government.”
The measure also grants the government the authority to prohibit mining in “certain energy-deficient regions.”
The laws, which are included in a compilation of hundreds of other legal changes, are anticipated to be signed by Putin early this week, according to politicians.
Both the media outlet and others observed that the law would “come into effect on September 1, 2024.” For years, miners have been making a plea to Moscow to legalize their industry. However, they are currently in a state of legal ambiguity due to a political impasse.
Nevertheless, the impasse in certain Russian Bitcoin mining regions appears to have been ultimately resolved as a result of power shortages and intensive lobbying earlier this year.
Vladimir Putin declared last month that there was a “critical need” for legislative regulation of cryptocurrency processing.
The Russian President observed that the “uncontrolled development” in electricity consumption for crypto mining “could result in power shortages in specific regions.”
The State Duma responded by expediting the bill’s passage through the house, with its second and third readings passing on a single day (July 30).
The bill will establish legal definitions for terms such as “mining” and “mining pools.” It will also result in the establishment of a second register of “mining infrastructure operators” under the jurisdiction of the Ministry of Digital Development.
Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor) is going to regulate conformity.
The law will also prohibit electrical power companies from directly initiating their own crypto mining operations.
Miners will also be required to submit all of their revenues to the tax authority and provide the addresses of all of their crypto wallets.
It is of the utmost importance that both Russian miners and mining pools sell coins “without utilizing Russian infrastructure.” This would compel Russian producers to offer their currencies on international crypto exchanges.
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