The Russian State Duma has passed a bill that legalizes Bitcoin mining and allows the use of crypto for international trade.
The bill, which was first introduced a few years ago, is expected to come into effect on September 1, pending final approval from the federation.
Based on local reports, the vote count during the session was convincing, with 404 votes in favor, representing 89.8% of the total. None of the members voted against or abstained.
The new legislation aims to address the challenges Russian banks face due to regulatory restrictions and international sanctions. The sanctions have significantly disrupted Russia’s trade ties with key partners including China, India, the United Arab Emirates and Turkey, as local banks have become increasingly cautious under Western pressure.
Mining regulations
The law establishes a regulatory framework to monitor crypto mining activities, ensure tax compliance and prevent illegal activities. A key feature of the bill is the authorization of Bitcoin mining.
The legislation, drafted by Deputy Anatoly Aksakov and other lawmakers, requires mining activities to be regulated by the government and the Bank of Russia, with a federal authority ensuring compliance. The initiative aims to bring mining activities out of the shadows and ensure that income is declared and taxes are paid.
In addition to regulating mining, the bill allows the sale of mined cryptocurrencies without using Russia’s information infrastructure, exempting these transactions from domestic currency regulation laws. However, the use of cryptocurrencies for domestic payments remains prohibited in Russia.
The legislation also includes a ban on crypto advertising intended to control the spread of digital currency use within the country.
Increasing acceptance
While crypto remains banned for domestic payments, the bill marks a notable shift in Russia’s approach to digital assets and currencies. The legislation aims to improve Russia’s trade ties and challenge global regulatory standards.
Russia is also considering the official legalization of stablecoins for international transactions to simplify cross-border payments for Russian companies, amid ongoing sanctions. The central band is actively discussing proposals to allow the use of these crypto assets, which are pegged to stable currencies or assets such as the US dollar or gold, making them less volatile than other cryptocurrencies.
Meanwhile, Russia’s Finance Ministry recently proposed letting traditional exchanges handle digital asset trading for select investors. A draft response from the government outlined the possibility of creating special regulations for “conducting organized trading in digital currencies, recognized as a commodity, on the basis of an exchange license or a trading system license.”