The plan intends to classify cryptocurrency mining as a commercial activity and impose taxes on the income generated.
A federal ministry has presented another recommendation addressing the crypto mining business, as the Russian government continues to work hard to come up with cryptocurrency legislation.
According to local news source Izvestia, Russia’s Ministry of Economic Development has approved the concept of crypto mining regulation in the country, proposing to allow mining activities in locations with “sustainable surplus in electricity generation.”
The ministry proposed lower costs for setting up mining farms and data centres in selected Russian regions, as well as lower energy rates for such facilities, as part of the plan.
The government also intends to set a power use restriction for each mining, reportedly suggesting higher energy rates in exchange for larger energy spending. According to the article, the authorities has yet to establish a threshold amount for this.
The latest suggested standards, according to the ministry, would eliminate the possibility of insufficient power supply for homes, social institutions, and infrastructure in other parts of the country.
In addition, the ministry is said to have advocated recognising cryptocurrency mining as a commercial activity and imposing taxes on cryptocurrency mining revenues.
The current suggestion comes amid continuous ambiguity in Russia regarding cryptocurrency regulation, with different sectors of the government disagreeing on how to control Bitcoin (BTC).
As previously reported, Russia’s finance ministry has pushed for regulation of the cryptocurrency business, while the Russian central bank has pushed for a ban on crypto transactions, citing investor protection concerns. On Feb. 8, after the Russian government publicly accepted the notion of crypto regulation, Bank of Russia governor Elvira Nabiullina stated that the bank did not endorse the government’s decision and will continue to oppose crypto adoption in Russia.
By this Friday, the government and the central bank are scheduled to introduce an unified crypto regulatory bill.
Recently, a number of significant state-sponsored financial institutions in Russia have advocated the concept of regulating cryptocurrency in the nation. Sber’s vice chairman of the executive board, Anatoly Popov, has reportedly stated that the corporation supports regulating rather than prohibiting the industry.
“We agree with the government that cryptocurrencies should be regulated rather than outright prohibited.” Effective regulation is required to allow citizens and companies to lawfully buy cryptocurrencies while also taking into account anti-money laundering (AML) systems and taxation,” he said.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
