Will Crypto Mining be Legalized in Russia? What Will be The Impact on Bitcoin?

Will crypto mining be legalized in Russia? What will be the impact on Bitcoin? On November 17, a bill was submitted to the Russian State Duma to approve the crypto mining and sale of bitcoin.

A new one in Russia aims to allow the sale and mining of cryptocurrency under the “experimental legal framework”. On November 17, a bill was submitted to the Russian State Duma to approve the mining and sale of bitcoin. According to Anatoly Aksakov, the chairman of the State Duma’s Financial Markets Committee, it is expected that this law will come into effect on February 1. (1) In the lower house of the Russian Parliament, some new provisions regarding cryptocurrency mining are being submitted. . On November 17, the bill proposes to allow cryptocurrency mining and virtual cryptocurrency sales. Sales of Bitcoin and other cryptocurrencies by Russian miners could put selling pressure on commodities. Russian law can legally support crypto mining

Crypto Mining in Russia

On November 17, a new law on crypto-mining (2) was submitted to the Russian Parliament. The proposed legislation would legalize both the mining of cryptocurrencies and the sale of mined digital assets. Currently, Russia does not allow the use of cryptocurrencies for payments. However, the new bill aims to make the mining and sale of cryptocurrencies legal under “experimental regulations”. According to the proposed bill: a digital currency miner in question can lose it, as long as there is no related transaction using Russian information resources, except for transactions that are conducted according to the test available in a legal environment. system. Russian laws regulating cryptocurrency mining may be approved as early as 2023.

The process is expected to pass three parliamentary documents in December 2022, according to Anatoly Aksakov, chairman of the Financial Markets Committee of the State Duma, who spoke to local journalists. Some documents (3) say that the measure can be legal as of January 1, while others say that it can start as soon as February 1. The new digital law approved in 2020 helped to create this law. The measure also prohibits the sale of digital assets in Russia and defines cryptocurrency mining and mining pools.

Bitcoin price may fall due to selling pressure

It is possible that miners will sell their digital assets on exchanges if Russia’s new crypto mining fees are passed. This will mean that miners send Bitcoin to an exchange where they can sell it for fiat currency or exchange it for other cryptocurrencies. The increase in the supply of cryptocurrency and exchanges leads to increased selling pressure, which brings its price down. Growing speculation on the exchange and sale of BTC by Russian miners may have a negative impact on the price of bitcoin.

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