Russia Will Legalize BTC mining But With A Catch: Report

Russia will legalize BTC mining as the newly proposed amendments of the passed bill on crypto usage will bring even more controversy so let’s find out more in the upcoming Bitcoin news today.

Russia’s On Digital Financial Asset legislation received another set of proposed measures that can push the country into launching the full-scale ban on crypto usage with three exceptions: bankruptcy, enforcement proceedings, and inheritance. The largest country in the world by landmass has been rather indecisive about the crypto regulation stance and its approach towards crypto regulations. The nation passed the DFA bill successfully in July after considering the radically different implementations.

One such proposal envisioned imprisoning BTC owners for more than seven years and subjecting them to even more expensive penalties. However, a recent one opposed it and claimed that putting people behind bars because they own cryptocurrency will be perceived as too extreme. Another local report showed that there’s even more confusion to the already passed bill. It reads that Russia’s Ministry of Finance proposed new amendments which legalize crypto mining for assets like Ethereum and bitcoin. Miners will not be able to receive their rewards paid in the mined cryptocurrency.

Russia will legalize BTC but redeeming the earned rewards in BTC or ETH will be against the law. Dmitry Zakharov, the Moscow Digital School CEO believes that the proposal requires even more clarifications:

 “The wording doesn’t bode well for miners, since it’s not clear how they can receive remuneration.”

It’s worth noting that Russia is responsible for about 7% of the global Bitcoin hash rate according to the data from Cambridge University’s Bitcoin mining map tool. If miners are unable to redeem their BTC rewards it could lead to an important change in the process. The new propositions want to introduce an “outright ban on all transactions with virtual money.” What makes the amendments striking, is that if it is adopted, Russian citizens will be able to obtain and to transact cryptocurrencies under three conditions.

Mikhail Uspensky, the deputy chairman of digital economy at the Moscow branch of the Russian Bar Association said that if someone wants to transfer his Bitcoins to a family member, he would have to commit suicide or risk going to prison. Other high-profile individuals from the government spoke against the proposed amendments as controversial and could cause a huge blow to the Russian crypto sphere.