Russia Proposes Making Crypto Assets ‘Export Products’

In a recent roundtable discussion, Deputy Finance Minister Ivan Chebeskov disclosed that Russia is currently exploring the possibility of enabling crypto miners to categorize the digital coins they generate as export products.

This proposal signifies a potential shift in the regulatory landscape, as it could introduce a new framework for acknowledging and treating bitcoin mining activities within the context of international trade.

Russia Drafts Proposal For Crypto Export

Chebeskov mentioned that the ministry had drafted a proposal enabling miners to export cryptocurrency generated through mining activities.

Drawing inspiration from existing legislation governing gas export, they formulated a concept to facilitate the export of the mined product, specifically cryptocurrency. The legislative initiative is currently in the process of development within Russia.

Chebeskov said.

“We have special legislation for the export of gas, for example. Using such examples, we developed a concept. This will allow miners to export the product of what they have mined – namely, cryptocurrency. It could become an export product.”

The Bank of Russia and the Ministry of Finance both encourage the use of cryptocurrencies for settlements in international economic activity under experimental conditions and support the industry’s recognition as one.

According to the proposed bill, miners of cryptocurrencies can obtain virtual money via foreign systems or a special platform created just for the trial.

As of today, the market cap of cryptocurrencies stood at $1.575 trillion. Chart:  TradingView.com

The Russian lower house, the State Duma, approved a different measure last year that legalized cryptocurrency mining on its first reading.

While outlawing the open promotion of digital currencies to unrestricted public audiences, the law establishes a system under which miners may trade cryptocurrency.

It requires miners to transfer freshly created coins solely through foreign exchanges and wallet systems. Additionally, the Federal Tax Service must receive reports on every transaction.

The chairman of the State Duma’s Committee on Financial Markets, Anatoly Aksakov, stated that a law governing the cryptocurrency mining sector would take effect in January 2024.

Now, this timeline doesn’t seem plausible. However, Chebeskov’s remarks imply that the ministry believes there is a strong chance its new law will succeed where others have failed.

Vladimir Putin, the president of Russia, formally approved a measure in July that would have introduced the nation’s money in digital form.

The Bank of Russia, the nation’s central bank, now has the legal power to serve as the digital ruble’s platform operator thanks to this action.

Featured image from Freepik