Russia’s cryptocurrency miners must pay at least 15% tax, and companies must pay no less than 6%, a lawmaker has said

A member of Russia’s upper house of parliament has suggested that private persons mining cryptocurrencies may face a heavier tax burden than enterprises operating in the sector. While Russia has yet to regulate the extraction of digital currencies, officials are leaning towards recognising it as an industrial activity, which will allow the government to tax mining revenues.

Cryptocurrency Mining Profits in Russia May Be Taxed as if they were made via the sale of securities.

According to Vladimir Gutenev, a member of the State Duma’s Industry Committee, personal income tax rate for individual crypto miners releasing revenues into the regular financial system cannot be less than 15%. According to a politician, corporations or sole proprietors participating in the minting of digital currencies should pay at least 6 percent in taxes.

During a press conference, Gutenev stated that in Russia, income tax must be paid when cryptocurrencies are cashed out if they are to be considered securities, according to Finmarket.

As far as the deputy was concerned, both natural and legal entities are entitled to mining rewards. In order to process blockchain transactions, bitcoin wallets receive these payments. They have the option of converting the virtual currency to real money.

In Russia, the legal status of crypto mining and a wide range of other operations related to cryptocurrency is still unclear. Moscow’s regulatory strategy is currently the subject of discussion among government agencies.

Creating, selling, and mining private digital currencies, which the Russian Central Bank refers to as “money surrogates,” would be completely prohibited under a proposal made by the bank. However, the Ministry of Finance, other departments, and regulatory organisations advocate legalisation under rigorous restrictions rather than outright prohibition, leaving the monetary authority in an isolated position.

Mining was added to the government’s regulatory roadmap for the industry that is aligned with the finance ministry’s position. In a recent speech, Russian President Vladimir Putin touted Russia’s economic advantages as a mining destination, while industry observers have questioned whether prohibiting currency minting is even viable.

Since China’s crackdown on the mining business in May of last year, Russia’s involvement in the crypto mining scene has grown. After the United States and Kazakhstan, Russia was placed third by the Cambridge Center for Alternative Finance in terms of mining capacity in a recent research. Over 11% of the world’s bitcoin hashrate was generated in August 2021, according to data compiled by the energy-rich nation.

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