Here's how Russia’s bill to legalize crypto mining could influence Bitcoin price


  • New Russian bill seeks to legalize crypto mining, sales under a new “experimental legal regime.”
  • A bill was introduced into the Russian State Duma on November 17, seeking to legalize mining and the sale of mined cryptocurrency. 
  • Anatoly Aksakov, Chairman of the Duma Financial Markets Committee believes that the bill will likely come into force on February 1. 

A new bill was proposed in the lower house of the Russian parliament regarding cryptocurrency mining. The bill proposes legalizing cryptocurrency mining and the sale of mined crypto on November 17. 

The sale of Bitcoin and mined cryptocurrencies by Russians could increase selling pressure on the asset. 

Also read: Cardano based regulated stablecoin USDA goes live in 2023, here’s what to expect from ADA price

Russian bill could legalize crypto mining in 2023

A new crypto mining bill was introduced in the lower house of the Russian parliament on November 17. The bill proposes to legalize cryptocurrency mining and the sale of the mined digital assets. 

Cryptocurrencies cannot be used for settling payments in Russia currently. However the draft of the new bill seeks to legalize crypto mining and sales under an “experimental legal regime.” 

The proposed bill reads:

Digital currency obtained as a result of mining can be disposed of by the person who carried out the mining of this digital currency on the condition that Russian information infrastructure is not used in conducting transactions with it, with the exception of cases of transactions carried out in accordance with the established experimental legal regime.

Russian crypto mining bill could be passed as early as 2023

Anatoly Aksakov, Chairman of the Duma Financial Markets Committee told the local press that he expects the proposed bill to pass all three parliamentary readings in December 2022. The bill could come into force as early as February 1, while other sources believe it could become a law as early as January 1. 

Aksakov said:

Passage of the law will bring this activity into the legal field, and make it possible to form a law enforcement practice on issues related to the issuance and circulation of digital currencies.

This draft bill was made possible by the law on digital innovation passed in 2020. The bill introduces and defines cryptocurrency mining and mining pools, and bans advertising of digital assets in Russia. 

Bitcoin price could crumble under selling pressure

If the new Russian mining bill becomes a law, there is a likelihood that miners will sell their digital assets on exchanges. This would imply miners transfer Bitcoin to cryptocurrency exchanges to sell it for fiat currencies or exchange it for other cryptocurrencies. 

An increase in the supply of a cryptocurrency on exchanges, increases the selling pressure on it, negatively affecting its price. Bitcoin price could suffer an adverse impact from the rising balance on exchanges, and the sale of BTC by Russian miners. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume

PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume

Decentralized exchange (DEX) PancakeSwap (CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price. 

More Cryptocurrencies News

Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt

Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt

Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, recently hit a milestone in the volume of tokens burned. Shiba Inu has burnt over 410.72 trillion SHIB tokens since the inception of the burn mechanism in the project, worth over $9 billion.

More Shiba Inu News

Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium

Dogwifhat crashes 60%, but here's why you should not buy WIF yet

Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective. 

More Dogwifhat News

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference

XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court. 

More Ripple News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP