A series of agencies in the Russian government suggest that the cryptocurrency mining sector should be legal

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2021-11-11 02:45:10

The Ministry of Economic Development, the Ministry of Energy and the State Duma want cryptocurrency mining in Russia to become a legalized business regulated as a business.

A series of agencies in the Russian government suggest that the cryptocurrency mining sector should be legal

According to a local report, some Russian authorities believe that cryptocurrency mining needs to have a comprehensive regulatory framework, while miners must be considered as entrepreneurs. The Russian Ministry of Economic Development has urged such a move.

The agency anticipates that the implementation of tax procedures for the mining sector can boost the state budget and intends to present specific ideas in this area soon:

“The recognition of mining operations as entrepreneurship will allow the taxation of income from these activities and, accordingly, the state budget will be significantly improved.”

Aleksey Minaev, Mineka’s Deputy Director of Digital Economy Development, believes that the cryptocurrency mining industry deserves respect and regulation. If that policy becomes a reality, Russia will benefit in the form of taxes, while citizens can legalize their income. Large corporations will also pay more attention to this area.

-See also: Contrary to China, Russia has no plan to completely ban cryptocurrencies

The next department to support this idea was the Department of Energy, but the Department of Energy required miners to declare the nature of their energy consumption. In turn, Anatoly Aksakov, head of the State Duma, reminded that mining is not banned in Russia but lacks clear tax regulations. He therefore called on local watchdogs to increase regulatory clarity and suggested miners pay higher electricity rates than other consumers.

However, this idea is facing quite a big hurdle in the face of the Central Bank of Russia. According to the nation’s most powerful financial institution, crypto assets and the activities associated with them are risks that the country should avoid. However, the argument was reinforced by Russian President Vladimir Putin when he made a point of admitting that Bitcoin does have value.

Despite Russia’s controversial stance, cryptocurrency mining is flourishing in the country mainly due to their vast scale and inexhaustible energy source. The drop in China’s hashrate after the ban has allowed many other places to increase their presence. Such is the case with the Russian Federation, which has become the third largest crypto-asset mining location, accounting for 11.2% of the global market share.

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