Russia Unveils Massive Plan to Export Cryptocurrencies Like Natural Gas

A pivotal moment in this trajectory was the bill submitted to the State Duma in November 2022. This legislation not only outlines how miners can sell their currency but also sets guidelines for responsible advertising and public offerings. Notably, the Central Bank suggests that cryptocurrency obtained through mining can only be traded on foreign platforms, accessible to non-residents, and independent of Russian information infrastructure.

Read More: Russia Opens Gateway for Cross-Border Payments!

Economic Impact: Estimates and Propositions

The Ministry of Finance estimates an annual mining value of approximately $4 billion, with miners reaping profits totaling around 100 billion rubles. Envisaging a 20% income tax rate, the sector’s tax contributions could potentially soar to 20 billion rubles.

Anatoly Aksakov, Deputy Head of the Ministry, expresses optimism regarding the plan’s realization, projecting a landscape where cryptocurrency miners operate within legal boundaries by 2024, thereby significantly bolstering the nation’s economy.

It’s Not All Roses!

However, amid this positive outlook, the absence of regulatory oversight has presented challenges. Issues such as unregulated equipment imports and strain on the energy grid have surfaced. Pavel Snikkars, Deputy Minister of Energy, emphasizes the urgency of imposing industry restrictions and regulations, citing the impact of unregulated mining activities on local infrastructure.

Aksakov advocates for a broader perspective, acknowledging the evolving cryptocurrency landscape. As newer cryptocurrencies adopt unconventional mining methods, attention is shifting toward repurposing mining data centers for emerging technologies like artificial intelligence. Industry experts, including Igor Runets, CEO of BitRiver, foresee potential in diversifying these centers into foundations for energy-intensive computing applications.

Here’s Some More Context: Russia To Use “Evil” Cryptocurrency For Foreign Trade; Here’s Why.

Russia’s Crypto Future

Russia’s resolute strides toward formalizing and regulating the cryptocurrency mining industry signal a promising era for miners and investors alike. If the proposed legislation materializes, it holds the potential to confer legitimacy, spur economic growth, and offer regulatory clarity to a sector that has long grappled within a regulatory gray area.