Russian officials support the idea of recognizing crypto miners as an entrepreneur-mining Bitcoin messages
Russian officials support the idea of recognizing crypto miners as an entrepreneur-mining Bitcoin messages
The mining of cryptocurrencies should be recognized as an entrepreneurial activity and taxed accordingly under Russian law, representatives of important ministries in Moscow and Parliament have given. Officials believe that the regulatory step would benefit both the state and the crypto industry.
Russian government raises taxes in millions after legalization of crypto mining
The law "on Digital Financial Assets", which came into force in January of this year, regulates certain crypto -related activities such as the "edition of digital currencies", but does not explicitly mention mining cryptocurrencies. The sector was still unregulated, the Russian Ministry of Finance recently admitted to the local press in comments. Industry has expanded in Russia, which is rich in energy resources, and worldwide leading travel destinations in relation to the proportion of the global hashrate.
According to the Ministry of Economic Development, Izvestia wrote in an article, the mining should be regulated exactly as an entrepreneurial activity, as fits into the legal definition of the civil law. It emphasized that this would enable the government to tax the miners' income and increase the household revenue. Alexey Minaev, deputy director of the Department of Development of the Digital Economy of the Ministry, told the Russian daily newspaper:
This is exactly an area in which the state can benefit in the form of taxes and people can legalize their income, the large companies are also more interested in it.
Valery Petrov, Vice President for Market Development and Regulation at the Russian Association for Crypto Economics, Artificial Intelligence and Blockchain ( ratiBibi ) Cryptocurrency rarely returned to Russia because they find it difficult to prove that the funds have been legally acquired.
The annual income from the Bitcoin mining ( btc ) alone were estimated at 19.7 billion US dollar, with Russia around 12 % of Total amount or $ 2.4 billion. Petrov claims that the Russian Federation has lost millions of dollars in recent years because the government has not regulated and taxed the business.
The idea of recognizing mining as an entrepreneurial activity was supported by the Energy Ministry, which believes that this would enable the authorities to distinguish between electricity consumption for private and business purposes. The step also found support in the state duma, the lower house of parliament, where the chairman of the important financial market committee, Anatoly Aksakov, called for such a solution.
The legislator admitted that the mining has not yet been banned, but pointed out that its taxation is not yet clear. Aksakov also suggested that it is worth considering to increase electricity tariffs for cryptocurrency miners because they are currently buying electricity at regular prices. The MP found that most companies in the sector currently do not pay taxes and added that large mining companies wanted to be legalized.
True to its hard attitude towards decentralized digital money, the Bank of Russia has explained that it does not support initiatives that promote the emergence of "monetary surrogates", a term that it often uses to describe cryptocurrencies. The central bank rejects its legalization in the country and claims that the ruble is the only legal means of payment under Russian law. However, the Ministry of Finance insists that the legal status of crypto mining is determined as part of the rules for the circulation of digital currencies.
Do you believe that Russia will introduce business-friendly regulations for its growing crypto mining industry? Share your expectations in the comment area below.
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