Russian Duma wants to regulate cryptocurrency mining as a company – Sept 09

As Russia’s crypto advocates work to attract global crypto miners, local lawmakers have taken regulation of the industry more seriously.

The TASS news agency reported that Anatoly Aksakov, chairman of the Financial Markets Committee of the Russian State Duma, said that Russian lawmakers are currently considering recognizing the cryptocurrency mining industry as a form of business under local business law Sept. 8.

“Like this [crypto mining] As a type of business activity, it is clear that it is necessary to register it in the state register, regulate it as a type of business according to an appropriate code and collect the appropriate tax,” said Aksakov.

He said the government was actively working on many regulatory initiatives related to the crypto industry to advance bills on crypto taxation, mining, and issuance shortly. Aksakov also stressed the need to create more regulatory clarity for digital currencies, stating:

“We have yet to discuss what digital money is; even if we call it a currency, it is used as a financial instrument or financial asset for investment rather than as a means of payment.”

According to Nikita Soshnikov, a former senior lawyer at Deloitte CIS and director of Alfacash, “Of course, the real impact on the industry will be limited to company registration and tax obligations, which are regulated to some extent by the government.”

Russia officially passed the basic legal framework to regulate cryptocurrencies like Bitcoin (BTC) in January 2021 as part of the “On Digital Financial Assets” law. Which bans the use of cryptocurrencies as a payment method. While crypto investments are officially legalized, the law lacks clear regulations for many specific industry issues, including taxes, mining, crypto inventory ownership and reporting, death, and other rules.

Related: Kremlin Says Russia Is Not Ready To Accept Bitcoin As A Legal Offer

In its first reading in February, the Russian State Duma passed a separate cryptocurrency taxation law, which requires citizens to report cryptocurrency transactions totaling more than $ 7,800 a year.

In August, the Council of Judges of the Russian Federation published an official statement regarding the possession of cryptocurrencies by Russian judges. The agency strongly recommends local judges not to hold cryptocurrencies as they are viewed as a type of foreign financial instrument and cites local court regulations.