Russian State Duma declines bill on cryptocurrency mining
MOSCOW. Oct 19 (Interfax) - The Russian State Duma voted on Wednesday to decline a bill on cryptocurrency mining submitted earlier by members of the New People parliamentary faction.
The bill On Mining in Russia prescribes the basics of regulation of cryptocurrency mining in the domestic jurisdiction but does not specify the procedure of taxation, requirements for data centers and mining operators.
The Duma Committee on Financial Market earlier recommended that the parliament reject the bill, arguing that it provides for the use of cryptocurrencies as a means of payment in Russia, which is prohibited by the constitution (it stipulates that the monetary unit in Russia is the ruble, and the introduction and issue of other money is not allowed).
In addition, the committee said the bill lacks a systemic approach to the regulation of mining and digital currencies. For example, the official register of types of economic activities (OKVED) does not currently contain a type of activity such as "mining of cryptocurrencies," and the bill does not provide for relevant amendments. Nor does the bill specify how miners would be registered as individual entrepreneurs, how a record of miners and their equipment would be kept, and how individuals who mine cryptocurrencies without registration as individual entrepreneurs would be identified.
The committee reasoned that the bill was fragmentary and inadequate and did not meet the standards of completeness, certainty and unambiguity of legislation.
It was reported earlier that the Finance Ministry was preparing its own version of amendments to the legislation that regulates cryptocurrency mining.
Cryptocurrency mining is the process of collecting online cryptocurrency transactions into a blockchain, which requires energy-intensive equipment. Mining rewards can be received by both individuals (individual mining) and companies (work in a pool). Payment for mining is credited to cryptocurrency accounts. To withdraw funds from cryptocurrency wallets, they often need to be converted into conventional (fiat) currencies of central banks.