The Russian central bank wants to introduce a ban on local crypto miners who sell coins to locals– continuing to take an exceedingly unfavorable position against cryptocurrencies.
According to a regional news outlet, the Russian central bank will only allow cryptocurrency miners to sell in foreign crypto exchanges to non-Russian citizens.
As many foreign cryptocurrency exchanges have prohibited Russians from accessing their platforms in line with sanctions over Russia’s war in Ukraine, the new idea is likely to raise a lot of worries among Russian miners. The Bank of Russia has long advocated for limiting resident trading to international trading platforms.
As per the Bank of Russia’s press office, the cryptocurrency that is created through mining can only be sold through foreign companies and to non-residents. The bank added that it is sticking to its stance of forbidding the circulation of digital money inside the Russian Federation.
The announcement follows the Russian Ministry of Finance’s rejection of the Bank of Russia’s plan to impose rigorous licensing requirements on cryptocurrency mining companies.
On December 6, Alexey Moiseev, the deputy finance minister, allegedly stated that a new strategy had been established by the Russian central bank to restrict mining to “authorized organizations.” However, the official claimed that such a policy would effectively result in “total licensing” of cryptocurrency mining. Moiseev allegedly said, “We are against it.”
On November 17 the lower house of the Russian parliament received a draft bill on cryptocurrency mining. A ban on the sale of cryptocurrency that has been mined to Russian citizens was not included in the bill’s initial version. The bill also prohibits miners from selling their coins elsewhere other than on international exchanges or through the state-backed platform that is being developed as part of the cryptocurrency legal framework’s test phase.
If miners want to sell their yield inside of Russia, the Bank of Russia mandates that they should do so with an “authorized organization.”
The most recent developments represent yet another turn in the lengthy debate over crypto regulation between the Ministry of Finance and the Russian central bank, which is more supportive of cryptocurrencies. While local cryptocurrency use has continued to increase, Russia’s communities and citizens still lack a clear cryptocurrency framework as a result of years of disputes.
Along with the government’s plan to legalise cryptocurrency for cross-border payments for imports, Russia’s law on crypto mining is one of the most eagerly awaited legal initiatives in the nation. The corresponding adjustments are anticipated to be approved by February 2023, according to Anatoly Aksakov, chairman of the lower house of parliament of Russia’s finance committee.