The authorities intend to make amendments to their criminal legislation. Russia seems to be protecting itself from the possible mass exodus of Bitcoin miners from China.
The Russian authorities are creating a series of improvements to its criminal legislation with the sole intention of allowing the confiscation of cryptocurrencies, which, in the opinion of the entity, have become a new source of income for criminal activities.
The news appeared on July 7, 2021. The Attorney General of the Russian Federation, Igor Krasnov, made the announcement and met a review from the Tass news agency. The official said that the illegal use of cryptocurrencies in Russia is a challenge, so he highlighted the adoption of the “On Digital Assets” law, which is a law that came into effect last January.
The official talked about these matters in a speech at the Conference of Chief Prosecutors of the European States, which took place in St. Petersburg. He noted that cryptocurrencies might serve as tools for corruption, including robbery, money laundering, and other criminal activities.
Krasnov, for whom the exchange of cryptocurrencies is a viable method to launder money stolen from the nation’s budget, said that the law became a great alternative in the fight against these crimes. He also thinks that the new updates to the Penal Code would bring additional protection to the country.
Russia Has Already Legalized Cryptocurrencies
The regulation of cryptocurrencies in Russia took a long time to enter into the discussion. These regulations received the legalization, considering them digital rights that include money claims before the Digital Financial Assets law. This acquisition occurred in January of this year.
In 2020, the president of that nation, Vladimir Putin, issued a decree that forced public officials to declare their bitcoin holdings and other cryptocurrencies.
On that occasion, Russia’s head of state recommended that federal and regional government agencies, the Central Bank, government extra budget funds, and state corporations use the new decree as a tool to guide their income declaration.
The State Duma approved a bill where appears the payment of tax for owning cryptocurrencies.
The initiative highlighted that people or companies that have made transactions of more than 600,000 rubles (USD 8,100) would have to file a declaration about their activities in crypto assets.
Russia is Looking for Greater Regulation As Bitcoin Miners Migrante from China
The news about the regulation of cryptocurrencies in Russia comes right after the repressive behavior of its neighboring country, China, against this industry. Russia is precisely one of the nations that appear on bitcoin miners’ list of options to transfer their operations.
In this way, it seems that the government is legally protecting itself against a possible mass exodus of bitcoin miners from China to its territory. The Asian nation has set a series of restrictions on bitcoin mining because this activity represents a threat to its eco-friendly plans,
A Chinese-American research team is studying the environmental impact of the mining industry. The group estimated that the miners would have withdrawn from Chinese territory in 2024, moving their mining activities to other countries.
By: Jenson Nuñez
