TL; DR Breakdown
- Russian state Duma forms group to tackle mining regulations.
- The draft bill will be submitted to the body for sign off.
- Russia is now one of the biggest Bitcoin hashrate contributors.
The mainstream adoption of crypto by all and sundry is pushing most countries worldwide to regulate the sphere in their states. Although crypto can be used to generate wealth, illicit actors are now using the sector to carry out their evil deeds. In this regard, the Russian state Duma has announced that it has picked a group of individuals responsible for coming up with regulations that would govern the crypto sphere in the country. According to the body, the issue regarding the formulation of regulation in the crypto sector is a tedious one that needs all hands on deck.
Volodin says a draft bill will be submitted to the Russian State Duma
The statement, released on November 10, was made by Vyacheslav Volodin, the chairman of the Russian Duma. In the statement, he ordered the legislative arm of the government of Russia to formulate the group that will oversee the issue of regulation in the sector. After the statement, the deputy of the representative on security issues, Andrei Lugovoy, announced that the group had been formed.
Lugovoy, a member of the DPP, mentioned earlier today that all the deputies have signed off on the bill, which will be presented to the Russian Duma. Lugovoy said that the regulation of Bitcoin and other digital assets had become an issue that needed tackling because most of them take in rewards without paying taxes.
In perspective, Lugovoy mentioned that the total amount that crypto miners earn across the country is about $2 billion. Furthermore, he said that because there is no regulatory framework to guide the sector, law enforcement and regulators have not been able to carry out their jobs in the industry.
Russia a big Bitcoin hash rate contributor globally
In a previous document released by RBC, the head of the financial markets of the Russian state Duma, Anatoly Aksakov, said that the body should class crypto under entrepreneurial activities. With this move, the crypto sector would be governed using the same laws that apply to the entrepreneurial sector. Backing Aksakov’s idea, the ministry of Energy in Russia pointed out that it is the way to go. Meanwhile, the Bank of Russia does not buy the narrative of the Russian State Duma and insists that such rules would open the country to the adoption of a new legal tender.
Earlier today, Volodin stressed that the regulation of the country’s crypto sector had become an urgent issue. This is due to the large entrance of miners who have left China to settle in the country. Presently, Russia and Kazhakstan have now become the top two countries contributing mainly to the hash rate of Bitcoin on the global stage.