- The pending legislation, named “On Digital Currency,” was initially introduced to the Russian Parliament in February
- Russia’s central bank called for a ban on crypto mining earlier this year
Russia’s Ministry of Finance has amended its digital currency bill to include cryptocurrency mining provisions, the agency announced Friday.
The ministry presented the original draft cryptocurrency law, which focused on digital assets as investment vehicles, to the Russian Parliament in February. The updated version of the bill, the ministry said, details rules around trading and mining cryptocurrencies.
The pending legislation, named “On Digital Currency,” comes as interest in the Russian government’s use of cryptocurrencies continues to increase amid the ongoing war in Ukraine, which started on Feb. 24 when Russia invaded the country.
In January, Russia’s central bank called for a ban of cryptocurrency mining, citing concerns that digital assets could undermine financial stability.
Reports that Russia was considering a state-sponsored digital ruble, its own central bank digital currency, swirled in early February.
In March, Sberbank, Russia’s top lender, was granted a license by the country’s central bank to begin issuing digital assets in response to US economic sanctions. Assets issued on the bank’s digital platform will be recorded and circulated via a distributed ledger technology system, ensuring “data security” and data immutability, Sberbank said.
The license will allow companies in Russia to issue their own digital assets, providing they prove they have the cash requirements, and use digital assets issued through the bank’s information system. The news came as concern over how Russian entities may be using cryptocurrencies to evade sanctions heightened.
The updated version of “On Digital Currency” introduces the concepts of professional and non-professional digital asset purchases, according to a report from Russian news outlet Kommersant. It also states the need to assess cryptocurrency products, the rules of trade and mining, the report added.