Russian lawmakers discussed regulation of cryptocurrencies

On Wednesday, October 18, a meeting of the expert council under the working group of the State Duma of the Federal Assembly of the Russian Federation “On the issue of legislative regulation of cryptocurrencies” was held. The meeting was attended by members of the newly created Industrial Mining Association, representatives of federal executive authorities, deputies of the State Duma of the Federal Assembly of the Russian Federation and members of the expert council, writes RBC Crypto.

Two approaches

The main issue on the agenda of the meeting was the problem of regulating the sphere of mining and turnover of cryptocurrencies in Russia. The two directions are forced to separate: according to Ivan Chebeskov, head of the Department of Financial Policy of the Ministry of Finance of the Ministry of Finance, who was present at the meeting, the position of the Bank of Russia regarding the circulation of digital currencies in Russia forced legislators to make the activity of mining cryptocurrency and its possible use within the framework of the experimental legal regime (EPR) a separate issue direction of future legislation.

The Ministry of Finance, for its part, proposed a comprehensive approach to regulation and has now reached a certain compromise with the Central Bank, although both departments are also negotiating with law enforcement agencies on the issue of liability for illegal activities related to digital assets. It is necessary to “consolidate the opinion of the market and convey the importance of adopting legislation and regulation in this area,” Chebeskov said, speaking positively about the creation of an association of industrial miners as an association of professional market participants.

Deputy Director of the Department of Financial Technologies of the Bank of Russia Stanislav Korop emphasized the importance of legalizing mining, and confirmed that the regulator is conducting a “constructive dialogue” with market participants, including members of the industrial mining association.

The Bank of Russia, according to him, opposes the adoption of cryptocurrency as a means of payment for individuals, but conceptually supports the experiment on cryptocurrency payments in foreign economic activity through an authorized organization. According to him, if a compromise is reached on the issue of regulating mining with the Ministry of Finance and law enforcement agencies, legislation can be presented as early as the autumn session.

Excess energy

First Deputy Chairman of the State Duma Committee on Energy Valery Seleznev noted the logistical advantages that are characteristic of this industry and suggested actively using them. In addition, the deputy drew attention to excess electricity capacity in some regions of the country, which can also be used in favor of the mining industry.

In his opinion, the Ministry of Energy faces a non-trivial task – not to affect the interests of investors and legal miners, while solving the problem with those who mine cryptocurrency illegally.

Deputy Minister of Energy Pavel Snikkars, who was present at the meeting, recalled that in the absence of legislation, there are no “neither white nor gray” miners. He once again emphasized a forced measure in the form of the possible introduction of discriminatory tariffs for miners in the Irkutsk region in order to ensure the correct distribution of electricity in the region.

He recalled that in the energy sector there are also several associations that are “more mobile” in decision-making, and if the industrial mining association manages to contribute to the creation of legislation, his department will also support the industry as legal.

At the end of August, the State Duma estimated treasury income from the legalization of mining at billions of rubles. According to Artem Kiryanov, deputy chairman of the State Duma Committee on Economic Policy, regulation of the industry will provide stable and significant income to the Russian budget.