Bitcoin to Take another Hit Due to Russia’s Mining Bill Update

Just when major institutions were trying to elevate the price of Bitcoin, Russia seems to have moved its trend deeper into the bearish zone. This is because the Russian Government and the regulatory authorities have made a change to the mining bill for cryptocurrencies.

It was a month back when a draft was presented for the mining bill of cryptocurrencies at the parliament of Russia. Following its submission, the draft has lost several key points that were added to it.

Major Key Points Removed from the Draft

According to sources, two major key points have been removed from the draft. The first key point is the one-year amnesty that was previously announced for the cryptocurrency mining centers. The amnesty was announced for the mining centers that registered themselves. The second key point was the special registry that the mining operators were required to go through.

In the parliament, a point was raised against the two key points which was the federal budget. It was argued that providing tax amnesty to the mining operators for a year would mean that the money would be payout from the federal budget.

As the Government is already facing a huge loss due to the ongoing war with Ukraine, it wouldn’t be a good idea to pass the key points. The majority of the parliament agreed to the argument and as a result, two major key points were removed from the draft.

Last Friday, a new bill has been drafted, which contains amended, removed, and new key points. These points are mainly contrary to the first bill that was presented at the parliament. The initial bill was reportedly submitted to the parliament on April 29.

The Problem for Bitcoin

In the mid of 2021, the Russian Government had started welcoming cryptocurrency mining companies to its land. The reason why the companies moved was due to the friendly tactic the Russian Government and the regulators had adopted surrounding mining operators.

This is the reason why many Bitcoin miners, when exiled from China, had moved to Russia. It was hoped that by registering, they would have tax amnesty for a year. It was expected that the companies would have a huge advantage over other mining companies in other parts of the world.

Now, the Russian Government seems to be changing its stance surrounding the cryptocurrency mining sector in the country. With this move, the mining centers in Russia may either have to lower their investments or they may relocate to other countries.

The gap caused during this time period would eventually negatively impact the trading price of Bitcoin. At the time of writing, Bitcoin stands at $29,808.80 and the Russian parliament’s decision may cause the price of Bitcoin to take a huge hit.