According to foreign media reports, the Russian State Duma passed a bill on first reading to legalize Bitcoin mining and allow the use of cryptocurrencies for international trade. The bill, originally proposed last year, is expected to take effect on September 1, subject to final federal approval.

The new law aims to address challenges faced by Russian banks due to regulatory restrictions and international sanctions. International sanctions have significantly damaged Russia's trading relations with key partners including China, India, the United Arab Emirates and Turkey, with local banks becoming increasingly cautious under Western pressure.

Cryptocurrency Mining and Regulation

The new law establishes a comprehensive regulatory framework that sets out requirements for the activities of individuals and legal entities engaged in digital currency mining, including mining pool participants, ensuring tax compliance and preventing illegal conduct. The Russian government and the Bank of Russia will be responsible for regulating this area, seeking to legalize cryptocurrency mining activities and ensure the declaration of income and the payment of taxes. Control (supervision) of compliance with the established requirements will be carried out by the Digital Development Department. Governments can also ban mining activities in certain areas or individual territories.

In addition to direct regulations on mining activities, the bill also allows for the sale of mined cryptocurrencies without using Russian information infrastructure, and these transactions will not be subject to domestic currency regulatory laws. Despite this, the bill still prohibits the use of cryptocurrency payments in the domestic market.

Advertising and international trade

In order to control the spread of digital currencies in the country, the bill also includes a ban on cryptocurrency advertising. Additionally, Russia is also considering officially legalizing stablecoins for international transactions to allow Russian companies to streamline cross-border payments in the face of ongoing sanctions.

Digital asset trading

On the other hand, the Russian Ministry of Finance also recently proposed a proposal to allow traditional exchanges to handle digital asset trading for selected investors, and the government’s draft response outlines regulations for conducting organized digital currency trading on the basis of an exchange license. Maybe.

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