The State Duma, the Ministry of Economic Development and the Ministry of Energy want cryptocurrency mining in Russia to become a legalized enterprise that is regulated as an entrepreneur activity. The country’s central banking opposed this move, citing risks associated with digital asset endeavors.
Russian Crypto Mining Needs “Respect and Regulation”
According to Izvestia, some Russian authorities think that cryptocurrency mining requires a robust regulatory framework. Miners should also be treated like entrepreneurs.
This was urged by the Ministry of Economic Development and other entities. It believes that crypto mining would be taxed and this could increase state revenue.
“Recognizing mining as entrepreneurial will allow for taxing income from such activities, and increase state budget revenues.”
Aleksey Minaev, Deputy Director for the Digital Economy Development at Mineka, stated that cryptocurrency mining deserves “respect” and regulation. If that policy is implemented, taxes will be paid by the Russian government, while the citizens will be able legalize their income. He concluded that large corporations will be more interested in this area.
The Ministry of Energy was next to support the idea, but it required that miners declare the source of their energy.
Anatoly Aksakov, head of the State Duma, reminded his colleagues that although digital asset mining is legal in Russia, there are no clear taxation regulations. He urged local watchdogs for better regulatory clarity and suggested that miners be subject to higher electricity tariffs than the rest of the population.
However, the Bank of Russia was a strong opponent to the idea. According to the Bank of Russia, digital assets and related activities are dangerous and should be avoided.
Elvira Nabinullina, the Chief of Russia’s Central Bank, recently called bitcoin and altcoins “speculative cryptocurrencyassets”, claiming that dealing with them is more risky than any other investment strategy.
Russia – One Of The Crypto Mining Leaders
Despite Russia’s controversial position on digital assets, cryptocurrency mining is flourishing throughout the country. This is primarily due to its large size and unlimited energy resources.
After the nation with the largest population, China, which has a declining hash rate share has allowed others to expand their presence. This was true for the Russian Federation which accounted for 11.2% of global digital asset mining locations.
USA is the undisputed leader, accounting for 35% of all hashrate. Kazakhstan comes in second with 18.1%.
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