Russian Central Bank Executive Has No Problem With Cryptocurrency Mining, But On One Condition

Russian Central Bank Executive Has No Problem With Cryptocurrency Mining, But On One Condition

Kirill Pronin, head of the Department of Financial Technologies of the Central Bank of Russia (CBR), acknowledged the possibility of legalizing cryptocurrency mining under certain conditions. A public acknowledgment like this would be rare, as the CBR continues to lead the battle against efforts to legalize cryptocurrencies in the country.

The executive expressed his opinion on mining at the International Legal Forum in St. Petersburg on Wednesday, June 29. During the session, dedicated to cryptocurrencies, Pronin revealed that the CBR does not take the same kind of strict stance against mining, as in the case of the general legalization of cryptocurrencies:

“Despite the fact that we systematically speak out in favor of a ban on the circulation of cryptocurrencies […] the discussion on the legalization of mining is possible”.

However, Pronin listed several conditions that, in his opinion, make this debate possible. He insisted that the mined assets must be sold strictly abroad and in exchange for current money:

“Ultimately, we must say that there must be an export of these mining services, and the mining business must not lead to the accumulation of cryptocurrency within the country, so there will be no motivation for further use in payments. local”.

In a kind of personal recreation of the current crypto battle between the CBR and the Ministry of Finance, the head of the latter’s Financial Policy Department, Ivan Chebeskov, vocally disagreed with Pronin, reminding him that there are notable challenges for Russian miners to sell their cryptocurrencies today.

In response to this, Pronin stated that there are no problems accumulating the wealth mined on public blockchains and selling it with their help.

Read:  This is how cybercriminals enter your bank account to steal from you

In May 2022, the new draft law “On cryptocurrency mining in the Russian Federation” appeared in the database of the lower house of the Russian parliament. The latest version exempts cryptocurrency miners from the obligation to enroll in a special registry and removes the previously proposed one-year tax amnesty.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Keep reading:

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.