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Russian Prime Minister Orders Finance Ministry, Central Bank To Agree On Crypto By December

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Russian Prime Minister Orders Finance Ministry, Central Bank To Agree On Crypto By December

The central bank and the finance ministry in Moscow have been asked by the head of the Russian government to agree on a vision for the development of the country’s digital asset market by Dec 1. Working with other regulators, they should also present a common position on the legislation needed to regulate it.

Pressed by Sanctions, Russian Government Moves to Regulate Cryptocurrencies

Russian Prime Minister Mikhail Mishustin has told the Ministry of Finance to prepare, together with the Bank of Russia, and submit concrete proposals for the future of the digital financial asset (DFA) market in the Russian Federation by the first day of December.

The head of the Russian government issued the order after a meeting devoted to the nation’s financial system, RBC Crypto reported. The top official emphasized that in the current circumstances, DFAs can facilitate uninterrupted payments for imports of goods and Russian exports.

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The finance ministry and the central bank have been tasked to update Russia’s “Strategy for the Development of the Financial Market until 2030.” The document should be revised taking into account the instructions of President Putin and, in the words of Mishustin, the prevailing geopolitical situation.

In January of this year, Vladimir Putin urged Russian government institutions to reach consensus on crypto regulations and highlighted Russia’s potential as a coin minting destination. In August, Mikhail Mishustin described digital assets as a “safe alternative” for cross-border payments.

The treasury department and the monetary authority are also required to work with the Russian financial watchdog, Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service to elaborate a unified position, by Dec. 19, on the draft laws designed to regulate the issuance and circulation of digital currency in Russia.

The federal legislation, part of which is the new bill “On Digital Currency” proposed by the ministry in February, should also introduce rules for cryptocurrency mining, an expanding industry in energy-rich Russia, and legalize the employment of digital assets in international settlements. Proposals are also expected on the use of the digital ruble for budget purposes.

Both the Russian central bank digital currency and decentralized cryptocurrencies are now viewed in Moscow as tools that can reduce the negative effects of sanctions on the Russian economy and foreign trade. Earlier this week, Director of the finance ministry’s Financial Stability Department Ivan Chebeskov indicated he expects to see international crypto transactions as early as next year.

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bill, Central Bank, cross-border payments, Crypto, crypto mining, Cryptocurrencies, Cryptocurrency, finance ministry, foreign trade, instruction, international settlements, Law, Laws, Legislation, mining, Mishustin, order, Payments, PM, President, prime minister, Putin, Regulation, Regulations, rules, Russia, russian, task

Do you think Russia will regulate its crypto space and legalize cross-border payments with digital currencies by the end of 2022? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Uzbekistan Introduces Monthly Fees For Cryptocurrency Companies

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Uzbekistan Introduces Monthly Fees For Cryptocurrency Companies

Crypto firms in Uzbekistan will have to pay fees to the state under new legislation proposed by regulators. The charges vary depending on the business activity and can reach $11,000 a month in the case of digital asset exchanges. Failure to pay will result in license suspension.

Crypto Operators in Uzbekistan to Be Charged Fixed Fees for Their Business Activities

Authorities in Uzbekistan have adopted a law which obliges entities working with cryptocurrencies to make special contributions to the state budget. The legislation, put forward by the country’s main crypto regulatory body, has come into force after registration with the Ministry of Justice, as required.

According to the bill authored by the National Agency of Perspective Projects (NAPP) under the President of Uzbekistan, licensed crypto companies will have to pay the charges each month. Different rates have been set for the various categories of cryptocurrency operators.

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Crypto exchanges, for example, will be charged the highest tariff of 120 million Uzbekistani soum (almost $11,000) while cryptocurrency stores will pay around $540, the Russian crypto news outlet Bits.media detailed in a report.

The tariff for individual miners will be around $270 per month and mining pools will have to transfer to the government a little over $2,700, at current exchange rates. At the same time, custodial service providers will enjoy the lowest fee — $135.

“Failure to pay the fee within one month constitutes grounds for suspension of the license. If the company does not pay the fee for two months within a year, the license may be canceled,” according to one of the law’s provisions. The NAPP will deduct 20% of each payment and the rest will go to the government coffers.

This year, Uzbek authorities have been quite active in their efforts to regulate the country’s growing crypto economy. In the spring, President Shavkat Mirziyoyev signed a decree expanding the regulatory framework for the Central Asian nation’s digital currency market. It provided legal definitions for crypto assets, exchange, and mining, and assigned oversight duties to the NAPP.

In June, the government in Tashkent presented a set of new registration rules for companies involved in the extraction of digital currencies and obliged miners to use renewable energy. Following a spike in activities of online platforms providing crypto services to Uzbekistanis without a local license, the NAPP took measures to block access to foreign crypto exchange sites in August.

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agency, bill, budget, Crypto, crypto exchanges, crypto miners, crypto mining, crypto stores, Cryptocurrencies, Cryptocurrency, Fees, Government, Law, Legislation, License, ministry, registration, Regulation, rules, tariffs, Uzbekistan, Uzbekistani

What’s your opinion about the new fees imposed by the government of Uzbekistan on crypto companies? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bill Aims To Limit Crypto Mining In Kazakhstan Only To Registered Companies

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Bill Aims To Limit Crypto Mining In Kazakhstan Only To Registered Companies

New legislation proposed in the parliament of Kazakhstan will allow only authorized miners to mint digital currency, if adopted. The draft has been designed to comprehensively regulate the industry and reduce what its sponsors label as uncontrolled consumption of electricity in the sector.

Lawmakers in Kazakhstan Submit Crypto Mining Law, Seek to Curb ‘Gray’ Mining

Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have put forward a new bill introducing rules for the extraction of cryptocurrencies in the country. Under its provisions, only companies registered at the Astana International Financial Center (AIFC) or non-resident entities that have agreements with licensed data centers, will be permitted to mine digital coins.

Kazakhstan became a magnet for crypto miners following China’s crackdown on the industry and the influx of mining businesses has caused a growing power deficit. AIFC, the Central Asian nation’s financial hub, is in the focus of government efforts to place the country’s growing crypto sector under oversight. Earlier this year, exchanges registered there were allowed to open accounts with local banks.

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The current procedure for notifying authorities of mining activities is voluntary, the crypto news outlet Forklog noted in a report on the legislative attempt. The process is regulated by an order issued by the minister of digital development. Only a third of all mining companies operating in Kazakhstan have registered, Member of Parliament Ekaterina Smyshlyaeva revealed.

“The uncontrolled use of electricity by ‘gray’ miners poses a threat to the energy security of Kazakhstan,” the lawmaker insisted. Smyshlyaeva added that the current legislation does not regulate the mechanism for the sale of the mined cryptocurrency or the role of local financial service providers and the circulation of digital assets. “The procedure for their production and the establishment of property rights to them are regulated only at sub-legislative level,” she explained.

According to Kazakhstan’s State Revenue Committee, the contributions of crypto mining entities to the state budget reached $1.5 million in the first quarter of 2022. In July, President Kassym-Jomart Tokayev signed into law a bill amending the country’s Tax Code to impose higher tax rates on crypto miners. The levies now depend on the amount and average price of electricity consumed for the minting of bitcoin and other cryptocurrencies.

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authorization, bill, coin minting, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, draft law, Electricity, Energy, Kazakhstan, Law, Legislation, Miners, mining, registration, Regulation

Do you expect the new law to reduce the number of entities authorized to mine cryptocurrencies in Kazakhstan? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Russia Said To Allow Crypto Mining In Regions With Hydroelectric And Nuclear Power

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Russia Said To Allow Crypto Mining In Regions With Hydroelectric And Nuclear Power

Cryptocurrency mining should be allowed in areas with excess energy and prohibited in those that experience deficits, according to Russian officials preparing to legalize it. An expert from the crypto industry has recently marked the regions where Moscow is likely to authorize mining and the ones where it will probably ban the extraction of digital currencies.

Expert Lists Russian Regions Most Suitable for Crypto Mining and Those Expecting Ban

The Central Bank of Russia and the Ministry of Finance recently agreed on legislation designed to regulate the mining of cryptocurrency that should be adopted by the end of this year. Lawmakers working to finalize it have indicated that the industrial activity should be permitted only in parts of the vast country that can produce more electricity than they need.

One of them, the Chairman of the parliamentary Financial Market Committee Anatoly Aksakov, also said that the energy-intensive process should be banned in other areas facing power shortages. The deputy assured that the respective bill will be filed with the State Duma in the near future and also called for the simultaneous regulation of mining and cryptocurrencies.

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The idea to authorize the minting of digital coins only in regions with a steady surplus in electricity generation is not new. A proposal in the same direction was made by the Russian Ministry of Economic Development in February, when the department also suggested introducing “acceptable” electricity rates for miners.

Roman Nekrasov, co-founder of ENCRY Foundation, which represents IT companies providing services in the field of blockchain and tech innovations, has shared with RBC Crypto his expectations about which Russian regions are most likely to be allowed to host crypto mining operations. He also listed those where miners will hardly be welcome.

Mining will be permitted in regions with hydroelectric and nuclear power plants, he told the crypto news outlet, which have been already populated with cryptocurrency farms for several years now. These include Irkutsk Oblast and Krasnoyarsk Krai, which have many hydroelectric power plants, as well as Tver, Saratov, Smolensk, and Leningrad regions, with their nuclear power plants.

The minting of digital currencies will probably be banned in the capital Moscow and the adjacent Moscow Oblast, Belgorod Oblast, and Krasnodar Krai, which have historically been energy-deficient, Nekrasov explained. He also expects the crackdown on illegal mining facilities in Dagestan to intensify. The Russian republic is another region with insufficient electricity supply where mining has spread as a popular source of income amid high unemployment.

The crypto industry expert also thinks Russian authorities could allow the extraction of cryptocurrencies in Karelia. However, this could happen under certain conditions such as requiring mining enterprises to support the construction of small hydropower plants, Roman Nekrasov remarked. Karelia was listed among the most popular crypto mining destinations in Russia in study released earlier this year.

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Aksakov, authorization, ban, bill, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, draft law, Law, legalization, Legislation, Miners, mining, mining farms, Regulation, Russia, russian

Do you expect Russia to allow mining only in its energy-rich regions? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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