Cryptocurrency mining may receive special legal regulation

The Ministry of Industry and Trade, the Ministry of Construction, and a number of other departments are considering the option of introducing a legal regime for the “extraction” of digital currencies (mining) in Russia. Relevant ideas were announced last year.  Then it was about establishing the so-called "regular sandbox", where the "extraction" of digital money would be carried out.

The mechanism involved the creation of a special legal regime for the use of computing power, which should be located on the basis of thermal generation facilities.

The concept was announced as a response to Anton Gorelkin, the deputy of the State Duma of the Russian Federation, who formed his package of proposals for regulating the cryptocurrency market on the basis of a round table-talk held in March, RIA Novosti reports.

The Ministry of Industry and Trade considered the initiatives voiced by Gorelkin relevant and noted the importance of further work in this direction.

At the end of last year, the issue of circulation of cryptocurrencies in Russia was raised by the Central Bank. The regulator proposed to ban both circulation and mining of digital money in the country, leaving only the right to own them. The Ministry of Finance of the Russian Federation opposed the idea, pointing out that the best option would be the legalization of such activities.

The government approved this idea and instructed to develop an appropriate draft law. Both the Ministry of Finance and the Central Bank have developed bills, each based on its own position on this issue. At the moment, activities in the field of regulation of the cryptocurrency market in Russia continue.