December 5, 2022

Miners take note

On Amendments to the Federal Law

“On digital financial assets, digital currency and on depositing amendments to certain legislative acts
Russian Federation"

sozd.duma.gov.ru/bill/237585-8

Draft federal law “On AmendmentsThe Federal Law “On Digital Financial Assets, Digital Currency and on Amendments to Certain Legislative Acts of the Russian Federation” (hereinafter referred to as the draft law) was developed in order to consolidate in the legislation of the Russian Federation the procedure and conditions for the creation (distribution) of digital currency (“cryptocurrency”) .

In accordance with the provisions of the Federal Law “On Digital Financial Assets, Digital Currency and Amendments
into separate legislative acts of the RussianFederation”, the regulation of issues related to the issuance and circulation of digital currencies should be provided within the framework of additional legislative regulation, which is currently absent.

However, despite the absence of the necessary legislative regulation, digital currency mining activities have received
active development in the Russian Federation.

The bill provides that the requirementsto the activities of individuals and legal entities engaged in the mining of digital currency, including participants in the mining pool, will be established by the Government of the Russian Federation in agreement with the Bank of Russia, and control (supervision) over compliance with the established requirements will be carried out by the federal executive body authorized by the Government of the Russian Federation. Federation.

Introduction of the proposed billregulation of mining activities, as well as the establishment of separate requirements for such activities, will allow you to legally carry out these activities, declare the income received, and also ensure the calculation
and payment to the budgets of all levels of relevant tax payments. In addition, it will help mitigate the legal risks associated with
with this activity.

The bill provides that the digital currency obtained as a result of mining is subject to sale
without using the Russian information infrastructure.
The bill is intended to establish a rule
on non-proliferation in cases of such implementationrules of legislation on currency regulation and currency control. In addition, a ban is established on advertising or offering in any other form to an unlimited number of people digital currency.

At the same time, transactions with digital currency, one ofwhich parties are persons engaged in mining activities, can be carried out using the Russian information infrastructure through an authorized organization within the framework of an experimental legal regime[1].

The adoption of the bill will formlaw enforcement practice, which, among other things, will contribute to ensuring further comprehensive regulation of issues related to the issuance and circulation of digital currencies.

The draft law complies with the provisions of the Treaty onthe Eurasian Economic Union, as well as the provisions of other international treaties of the Russian Federation and will not affect the achievement of the goals of state programs of the Russian Federation.

[1] Federal Law No. 258-FZ of July 31, 2020 “On experimental legal regimes in the field of digital innovation
In Russian federation"