After the recent events in the crypto money markets, countries are taking steps. Finally, the lower house of the Russian parliament proposed a new bill on cryptocurrency mining. According to the bill, it is proposed to legalize cryptocurrency mining and selling crypto on November 17. The adoption of the bill is likely to affect the wider crypto market, especially Bitcoin.
Bitcoin price decline is possible if the bill is approved
The sale of Bitcoin and cryptocurrencies by the Russians has the potential to increase the selling pressure on the asset. On November 17, he introduced a new crypto mining bill in the lower house of the Russian parliament. The bill proposes to legalize crypto mining and the sale of cryptocurrencies. With all this, cryptos cannot be used to make payments in Russia at this time.
Also, the draft of the new bill aims to legalize crypto mining and sales under the guise of an “experimental legal regime”. One of the articles in the proposed bill includes the following:
The cryptocurrency obtained as a result of mining can be disposed of by the person who mined this cryptocurrency, except for the transactions carried out, provided that the Russian information infrastructure is not used in transactions with it. But it can be done in accordance with the established experimental legal regime.
Cryptocurrency law could be activated in 2023
Anatoly Aksakov, Chairman of the Duma Committee on Financial Markets, told local media that he expects the proposed bill to pass all three parliamentary readings in December 2022. The law is expected to be active in 2023 and on 1 January. Aksakov said the following regarding the draft law:
The enactment of the law will carry this activity into the legal field. It will make it possible to establish a law enforcement practice on matters related to the issuance and circulation of cryptocurrencies.
As we have reported as Kriptokoin.com; The bill was made possible by the digital innovation law adopted in 2020. The bill introduces and defines crypto mining and mining pools. It also prohibits the advertising of cryptos in Russia. In general, the approval and enactment of the bill is likely to affect Bitcoin and altcoins. If the new Russian mining law works legally, there is a possibility that miners will sell their assets on crypto exchanges.
This means that miners transfer Bitcoin to crypto exchanges to sell it for fiat currencies or exchange it for other cryptos. The increase in the supply of a crypto asset on exchanges increases the selling pressure on it, negatively affecting its price. Bitcoin price could be adversely affected by the increased balance on exchanges and the sale of BTC by Russian miners. After that, it is possible to experience a decrease again.
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