Russia’s Ministry of Finance is considering exporting cryptocurrency generated by mining operations in the nation. According to the Ministry, this method would work similarly to the country’s natural gas exports.
The announcement was made at a recent roundtable discussion by Russia’s Deputy Finance Minister Ivan Chebeskov. Chebeskov noted at the “Cryptocurrency and the Future of Digital Finance” event that draft legislation is being drafted based on current restrictions for natural gas exports.
Russia’s game-changing cryptocurrency export strategy
As addressed by Russia’s Deputy Minister of Finance Ivan Chebeskov during the round table on “Cryptocurrency and the Future of Digital Finance,” Russian miners might get granted a license to sell Bitcoin as an export product. Chebeskov told the Russian news agency RBC:
There is an option and a bill – to use the export of cryptocurrency as a product of mining activity. That is, there is special legislation for the export of gas, for example, using this example, we developed a concept, a project so that a miner could export the product of what he mined, that is, cryptocurrency as an export product. Such a legislative initiative is also being formed in our country.Ivan Chebeskov
In light of the abundant resources and affordable electricity in Russia, a number of miners have established residences there. Additionally, Chebeskov underscored the consensus between the Bank of Russia and the Ministry of Finance regarding the recognition of cryptocurrency mining as a profession.
An additional objective is to experimentally investigate the viability of using cryptocurrencies for settlements in international economic transactions.
The future of crypto mining in Russia
In a significant development, a bill to legalise crypto mining was submitted to the State Duma in November 2022. It defines the mechanism for miners to sell created cash and also forbids the advertising or offering of digital currency in any way to an unlimited number of people.
Mining-generated crypto can be sold on foreign websites “without using Russian information infrastructure.” The mined crypto can be gained in two ways: through foreign systems that do not follow the rules of the law on currency regulation and through a platform built as part of the experiment.
The Federal Tax Service must be notified of the transactions in both circumstances. Russia’s Central Bank stated that the mined cryptocurrency can only be sold using foreign information infrastructure and to non-residents.
Anatoly Aksakov, the chairman of the State Duma Committee on the Financial Market, alluded to the possibility that comprehensive legislation regulating crypto mining might take effect in 2024 during the summer of 2023. The continuous refinement of the legislation is apparent in its development subsequent to the initial reading.
Following a series of sanctions imposed in response to the invasion of Ukraine, Russia has oscillated in its stance regarding its crypto policy. Nonetheless, the nation has not yet decided whether to legalize the use of cryptocurrencies.
The crypto market in Russia is moving forth in strength amid Western sanctions and the region’s lack of global crypto exchanges. As of November 15, 2023, Binance ceased accepting deposits denominated in Russian rubles. Binance advised users to withdraw RUB from the platform prior to January 31, 2024, when RUB withdrawals are estimated to be discontinued.
According to the announcement, Russian Binance users can transfer their funds to CommEX, a new crypto exchange that acquired Binance’s Russian division in September 2023. Binance announced that RUB withdrawals will incur no fees on CommEX.
Additional withdrawal alternatives comprise the fiat partners of Binance, who enable users to exchange RUB for cryptocurrencies via the Binance Spot Market or convert RUB to cryptocurrency using the “Convert” utility.
Binance announced its complete withdrawal from Russia in late September 2023 when it disclosed the transfer of its company to CommEX, a recently established cryptocurrency exchange company.
The transaction swiftly generated controversy due to the lack of disclosure by Binance and CommEX regarding the deal’s magnitude and the identities of CommEX’s founders.