• International sanctions are driving crypto adoption in Russia.
• Russian lawmakers are attempting to push through a draft law that would legalize crypto mining and oblige miners to pay taxes.
• The Central Bank has called for a ban on crypto, but pro-industry forces in the government remain vehemently opposed.
International sanctions have been driving crypto adoption in Russia, according to Yuri Myshinsky, Chairman of the Board of the Digital Transformation Association. Russia’s relationship with cryptocurrencies has historically been somewhat contradictory.
The government is currently attempting to push through a draft law that would legalize crypto mining, and oblige miners to pay taxes on their earnings. This would be a huge boon to the country, as many domestic energy producers are keen to set up data centers to mine crypto using associated gas at oil drilling sites. The Ministry of Finance is also looking for ways to provide Moscow with a revenue boost by legalizing crypto mining.
However, the Central Bank is not in favor of crypto being used in the Russian economy, and has repeatedly called for a ban on crypto. Despite this, there has been strong opposition from pro-industry forces in the government. Myshinsky stated that although conversations about crypto have been held, efforts to create crypto sector-related legislation have so far been unsuccessful.
He suggested that the sanctions imposed on Russia have been the main driving force behind the country’s adoption of crypto, and that this could result in further growth in the sector. The sanctions have made it difficult for the country to access the international financial system, and crypto provides a viable alternative.
Despite the Central Bank’s stance on crypto, it appears that the Russian government is willing to embrace the technology as a means of circumventing the sanctions and driving economic growth. This could lead to a strong future for crypto in Russia, as long as the government is able to create the necessary legislation.