Russian State Duma Contemplates Bill on Mining Cryptocurrencies

A bill on mining cryptocurrencies is being currently held in the Russian state of Duma. According to the local media, deputy chairman of the State Duma Committee on Information Policy, Anton Gorelkin stated that the measure about mining cryptocurrency is being presented to the body on Friday. The bill comes at a time when globally there has been a surge in including the crypto sphere under regulation- though some stand good while others bad.

Russian State of Duma To Enforce New Mining Cryptocurrency Law

Local media reports also highlight that the draft law states that the only people who can mine digital currency will be those who are Russian legal entities or individual entrepreneurs listed in the relevant register, as long as they don’t use more energy than the government has set as their daily limit.

“We firmly believe that the use of digital currency to legalize illicit gains, fund terrorism, or engage in other illegal activities must be prohibited. Consequently, the bill stipulates that miners must inform the authorized body about any digital money they receive through mining, and identification addresses, and the authority Rosfinmonitoring has to keep a suitable list up to date, according to Gorelkin.

He claims that the bill makes it possible to sell virtual money earned through mining without utilizing the Russian information network.

Global Perspective of Mining Cryptocurrency

Globally, governments are currently confused about crypto mining regulations. The United States for example tried evaluating data on how much energy is utilized in mining cryptocurrency. However, the effort met with strong opposition.

A crucial indicator of the profitability of Bitcoin (BTC) mining has reached an all-time low as the network deals with the fallout from its fourth halving event. The Luxor-created hashprice dropped to $57.09 on Friday, April 26. This is reminiscent of the levels last observed during Sam Bankman-led FTX’s collapse.

Duma’s New Bill Might Impose Some Restrictions

Duma’s new bill on mining cryptocurrencies will have an impact on the quantity of mining that will take place.

“Will the measure still provide for the potential prohibition of mining operations in specific Russian Federation regions? Indeed, giving the Russian Federation’s government such rights is a possibility; however, given the risks to the mining industry’s growth, we anticipate a specific discussion on the terms and extent of this prohibition,” Gorelkin added.

He also emphasized that, in his opinion, legalizing cryptocurrency turnover is a matter of patriotism since it allows Russia and its allies to evade unjust sanctions.

Read Also: Runes Exploits Network’s Design Flaw: Bitcoin Core Dev Insists