Bank of Russia supports Crypto Mining Bill, but insists that Minted Coins should be Exported


Moscow’s monetary authority has supported the latest legislative effort to legalize cryptocurrency mining. The regulator does not want the extracted digital currency to be exported outside of Russia or to be sold under Russian law.
Russia’s Central Bank suggests that restrictions be added to the proposed Crypto Mining Law
The Central Bank of the Russian Federation (CBR), while conceptually supporting the draft law to legalize crypto mining, maintains that digital currencies should be sold mostly on foreign exchanges and not to non-residents.
The Russian Interfax news agency was informed by a representative of the bank that if coins were to be exchanged domestically, it should only be done through licensed platforms operating within regulated environments. A representative elaborated:
We allow the possibility to lift such restrictions within the framework experimental legal regimes, provided that transactions using cryptocurrencies are made through an approved organization.
The official stressed that the monetary authority abides by its position, which was reiterated on multiple occasions that so far, that cryptocurrency circulation within the Russian Federation is prohibited.
A group of lawmakers presented to the State Duma (the lower house of parliament) a bill to regulate the mining and trading of crypto currencies, such as bitcoin, through amendments to the country’s law “On Digital Financial Assets”.
The draft gives miners two options for selling the Bank of Russia-minted coins. The Federal Tax Service should be notified of any transactions in either case. Although payments made with a currency other than the Russian ruble are prohibited under the current law, the idea of legalizing cross border crypto settlements is gaining momentum amid sanctions.
The filed bill does not mention that the mined crypto should be sold only outside Russia. It also doesn’t refer to an “authorized organisation” for transactions under special legal regimes within Russia.

Finance Ministry rejects the latest position of Central Bank
On Tuesday, Alexey Moiseev, Deputy Minister for Finance, stated that the CBR has a “new position”, which he believes amounts to a ban against mining outside of the legal regimes. He stated that his department doesn’t accept this “total licencing” policy.
The bank and the ministry have been arguing for months about the regulation of cryptocurrencies in Russia. While the Minfin took a more liberal stance, the monetary authority proposed a blanket ban.
Despite these differences, Anatoly Aksakov, head of the parliamentary Financial Market Committee was quoted as saying earlier this week that he expected lawmakers to pass the new legislation by the end of the year.
Alexander Brazhnikov, Executive Director of Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain, pointed out that Russian miners will likely face restrictions from foreign exchanges if they try to sell abroad. Although it is a good idea to trade the coins in Russian special regulatory areas, it would take at most a year for them to be established.
Do you believe the Russian parliament will approve the law regulating crypto-mining by December’s end? Please share your hopes and concerns in the comments section below.


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