Russia to Ban Local Miners from Selling Crypto to Russians

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Russia’s central bank says local crypto miners can sell their crypto to foreign exchanges and non-Russian customers.

The Bank of Russia, the central bank of the Russian Federation, is reportedly considering banning local crypto miners from selling cryptocurrencies to Russian residents.

According to the news report shared by Interfax on December 7th, Russia’s central bank is supporting the idea of allowing crypto mining in the country. However, the institution believes that mined crypto should be sold only to foreign crypto exchanges and not Russians.

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Regarding the situation, a person familiar with the matter stated:

The Bank of Russia conceptually supports the bill. It provides for restrictions on transactions with cryptocurrencies obtained as a result of mining. At the same time, we believe that cryptocurrencies obtained as a result of mining can be sold exclusively using foreign information infrastructure and only to non-residents.

However, the proposal of selling mined cryptocurrencies to foreign exchanges might be a difficult task for local crypto miners to fulfil. Several foreign crypto exchanges banned Russians from using their services after the country started a war against Ukraine.

Despite the initial proposal, the Bank of Russia stated that if local miners want to sell their cryptocurrencies in Russia, they must do it through an “authorized organization.”

The new plans from the Bank of Russia come shortly after the Russian Ministry of Finance opposed the central bank’s offer to legalize crypto mining.

In response to the central bank’s proposal, Deputy Finance Minister Alexei Moiseev told reporters that the Ministry of Finance does not support the presented position of the Central Bank.

The Central Bank has a new position that we cannot yet accept. In fact, mining is banned, which is not carried out within the experimental legal regime. That is, people who have to do mining must do it through an authorized organization, that is, in fact, total licensing. We are against it.

In other Russia-related news, at the end of November, the news broke that the Ministry of Finance and the Central Bank of Russia are reportedly looking into the possibility of launching a national crypto exchange.