Cryptocurrency mining can become legal if the income of miners is realized outside the country

Central Bank called the condition for the legalization of mining in Russia

30.06.2022 - 06:40

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2 min

What’s new? The Bank of Russia has announced a condition under which the regulator is ready to consent to legalize cryptocurrency mining in the country. Kirill Pronin, Director of the Financial Technology Department at the Central Bank, noted that this is possible only if the implementation of miners’ proceeds in the form of digital assets takes place outside of Russia, Interfax reports.

Information on the Interfax website

What else did Pronin say? As part of his speech at the St. Petersburg International Legal Forum, he noted that cryptocurrency mining is not the responsibility of the Central Bank. In this, as mining is a way of acquiring digital assets (as a reward for validation), a number of requirements must be met for it to be legalized. Pronin explained that the cryptocurrency to be generated by miners as income must be sold for fiat and only outside of Russia. He added:

“By and large, we are talking about the fact that there should be export of these mining services and the miners’ business should not lead to the accumulation of cryptocurrency within the country, so as not to create motivation for its subsequent use in domestic settlements.”

Earlier, Central Bank Governor Elvira Nabiullina reported that the regulator allows the use of cryptocurrencies in international settlements, but digital assets should not penetrate the Russian financial system and be used within the country as a means of payment.

The Ministry of Energy is developing a concept for the regulation of mining. The department intends to include cryptocurrency mining in the All-Russian Classifier of Economic Activities and set special electricity tariffs for miners.

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