The authors of the draft law on mining in the Russian Federation proposed to ban the circulation of cryptocurrency

On Thursday, November 17, a draft amendment to the law “On Digital Financial Assets” was sent to the State Duma, which would legalize the production of any digital currency in Russia.

The changes are intended, according to the authors, to enshrine in the legislation the concept of mining, which "creation of digital currency (cryptocurrency)". However, the text, among other things, contains a clause expressly prohibiting the advertising and circulation of any digital currency on the territory of the Russian Federation.

What they say about the restriction of turnover

Verbatim:

“In the Russian Federation, it is prohibited to advertise and (or) offer in any other form to an unlimited circle of persons digital currencies, as well as goods (works, services), organize the issuance, issue, organization of circulation, circulation of digital currency (with the exception of digital currency mining).”

These are specifically the changes in Article #14 “Digital Currency Transaction”.

The necessity of the draft law, according to the explanatory note, is due to the fact that in Russia there is no legislation on the issuance and circulation of digital currencies. At the same time, the authors state, mining is actively developing.

What is said about mining

Mining should be regulated by a separate government agency appointed by the government. Requirements for a legal entity and a person who has the right to engage in mining, organize a mining pool or become a member of it are also at the mercy of government officials.

The mined cryptocurrency "is to be sold without the use of the Russian information infrastructure." Except when the seller is the miner himself. At the same time, the text of the draft says, the sale is allowed, but "through an authorized organization in an experimental legal regime."

Mining is understood as "the activity of performing mathematical calculations using computer devices and software and hardware to make entries in an information system using distributed registry technology in order to create digital currency and (or) receive rewards in digital currency."

What does the bill mean?

The prohibition laid down in the new paragraph 8 of Article 14 does not formally apply to the circulation of cryptocurrencies in general. It prohibits only the broad (non-targeted) offer and advertising of goods and services related to public cryptocurrencies.

For example. Betting on an individual basis, follows from the text, it will be possible to deal with. But organizing a pool of rates and offering it as a service is not.

Direct P2P exchange of cryptocurrencies with friends or in private groups is allowed, but the public offer of an exchange should be prohibited. Thus, almost all existing crypto exchanges are banned.

Similarly, all other services related to cryptocurrency should be considered. Privately you can't like a commercial product or service.

Please note: in the process of discussion, this section of the bill, like others, may be changed.

Who introduced and promotes the bill

The changes were made by a group of 16 deputies, including quite loud ones: Anatoly Aksakov, Chairman of the Committee on the Financial Market, Arkady Svistunov, Deputy Chairman of the Committee, Anton Gorelkin, Deputy Chairman of the Information Policy Committee, Andrey Lugovoy, former Minister of Agriculture, etc. . Further.

The draft has just been submitted, and now the chairman of the State Duma must allow it to be submitted to the relevant committee for consideration. That is, the committee on financial markets or information policy - or both committees at the same time. The committee considers and recommends to the State Duma to accept or reject the bill. Then, at the plenary session, the State Duma votes for the bill - or against, after which the document is rejected.

In October, the initial version of the mining amendments was considered, but at a meeting of the State Duma they were voted against on the initiative of the head of the finance committee, who is now one of the authors of the new version. In the spring, the same Anatoly Aksakov promised a bill on the regulation of cryptocurrencies in Russia just in time “by autumn”.

In January, the central bank proposed a complete ban on the circulation and mining of cryptocurrencies, imposing fines on violators. But then it came only to “public consultations”.