Russia to Crackdown on Crypto?

Yahoo Finance

Hey folks.

In a move to control the market that previously operated mostly beneath the radar, Russia reportedly is considering a crackdown on crypto.

A bill to regulate cryptocurrencies in Russia is now being discussed by the State Duma, the lower house of the Russian parliament. The document outlines a complete restriction on the creation of cryptocurrency circulation starting on September 1, 2024, with the exception of efforts endorsed by Russia's central bank and miners who are formally registered.

Only Russian enterprises and individual entrepreneurs listed in a special register would be allowed to mine cryptocurrency, according to the proposal. Private persons will be authorized to mine crypto without being included in the registry as long as they stick to the energy consumption regulations of the government, which may prevent them from mining activities.

Additionally, the bill prohibits promoting digital currencies and the companies that manage their distribution.

Miners in Russia will now be required by law to submit to the tax office the whole amount of crypto they have mined together with the cryptocurrency addresses that have been used to receive the mined money.

Legislators insist that the purpose of this provision is to stop these funds from being used in financing terrorism, money laundering, or other acts criminally punishable. In addition, the authorities will have the authority to completely ban the mining of crypto in specified parts of the country.

On April 27, a lawmaker from Russia stressed that the country does not intend to ban cryptocurrency transactions. He also criticized media outlets for creating dramatic headlines without first verifying the information.

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