Kirill Pronin said that crypto mining could be legalized if crypto would only be sold to foreign buyers in exchange for fiat currency.
The prospect of legalizing crypto mining under specific circumstances was accepted by Kirill Pronin, head of the Department of Financial Technologies of the Russian Central Bank (CBR). An open admission like this is unusual, given that the CBR is still leading the opposition to the country’s efforts to legalize cryptocurrencies.
On June 29, the executive discussed crypto mining at the Saint-Petersburg International Legal Forum. Pronin indicated that CBR does not take the same kind of tough stand on mining as it does with the general legalization of cryptocurrencies during the session devoted to cryptocurrency:
“Despite the fact that we are speaking up consistently for the prohibition of cryptocurrencies’ turnover […] the discussion regarding mining’ legalization is possible.”
However, Pronin listed a few circumstances that, in his opinion, allow for this discussion. He stressed that the extracted resources should only be sold to foreign buyers in exchange for fiat currency:
“Ultimately, we must say that there should be an export of these mining services, and the mining business shouldn’t lead to accumulation of cryptocurrency in the country, so there won’t be a motivation for a further usage in the internal payments.”
Ivan Chebeskov, the head of the Department of Financial Policy at the Ministry of Finance, strongly disagreed with Pronin and reminded him that it is currently difficult for Russian miners to sell their cryptocurrency abroad, in what could be considered a personal reenactment of the ongoing conflict over cryptocurrency between the CBR and the Ministry of Finance.
Pronin responded by saying that there are no issues with amassing the wealth that has been mined on the public blockchains and selling it with their assistance.
The updated version of the law “On Mining in the Russian Federation” first appeared in the lower chamber of the Russian parliament’s database in May 2022. The most recent version eliminates the previously proposed one-year tax amnesty and exempts mining operators from the requirement to register in a special registry.