Russian central bank disagrees with Ministry of Economic Development’s plan to legalize bitcoin mining

The Russian Ministry of Economic Development, with the support of the Ministry of Energy, wants to legalize Bitcoin (BTC) and the mining of cryptocurrencies, but the Russian central bank has spoken out against this plan.

Russia’s central bank says no, even though the Russian Ministry of Economic Development wants to legalize bitcoin mining

According to Izvestia, a spokesman for the Ministry of Economic Development, said:

“Recognizing mining as entrepreneurship would enable the government to tax the income from such activities and thus increase government revenues.”

The spokesman added that ministry officials “have discussed this initiative with business and entrepreneurs” who plan to make proposals to the government for mining projects “in the near future”.

Data compiled by Cambridge University in August this year shows that Russia’s average monthly Bitcoin hash rate, or the network’s computing power, accounts for 11.23% of the global total.

However, the central bank despised these plans. The spokesman said the bank “does not support an initiative to encourage the emergence of forex dealers”.

The reason why the Central Bank of Russia does not agree to legalize Bitcoin mining

The bank, which supports the development of a state-controlled digital currency, has urged the Kremlin to push for Chinese-style action and effectively ban cryptocurrencies. Nonetheless, business leaders, the above-mentioned ministries, and finance chiefs have pushed for adoption – a practice that has so far led to years of stagnation.

The head of the central bank, Elvira Nabiullina, recently warned against investing in “speculative cryptocurrencies”, adding:

“Cryptocurrency prices are very volatile and losses can be enormous. Central banks never give advice on where people should put their money. But in the special case of cryptocurrencies, tokens are definitely not a good investment option. “

Even so, the ministry’s deputy head of the digital economy division, Aleksey Minaev, was quoted as saying that the cryptocurrency mining industry “deserves respect and regulation” while claiming that “countries can get benefits in the form of taxes”. “While miners can” legalize their income “.

The Department of Energy agreed, but noted that miners may have to pay for electricity at a different tariff instead of being allowed to use the same tariff as domestic consumers.

The chairman of the State Duma’s Financial Markets Committee for Financial Markets, Anatoly Aksakov, has previously spoken out in favor of recognizing cryptocurrency miners as “entrepreneurs”.

Aksakov indicated that mining cryptocurrencies is not illegal under current regulations, adding that there is a need for more clarity on taxing miners’ profits.

Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and exchange information about the crypto currency market.

Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice in any way. Your money, the choice is yours.

The Russian Ministry of Economic Development, with the support of the Ministry of Energy, wants to legalize Bitcoin (BTC) and the mining of cryptocurrencies, but the Russian central bank has spoken out against this plan.

Russia’s central bank says no, even though the Russian Ministry of Economic Development wants to legalize bitcoin mining

According to Izvestia, a spokesman for the Ministry of Economic Development, said:

“Recognizing mining as entrepreneurship would enable the government to tax the income from such activities and thus increase government revenues.”

The spokesman added that ministry officials “have discussed this initiative with business and entrepreneurs” who plan to make proposals to the government for mining projects “in the near future”.

Data compiled by Cambridge University in August this year shows that Russia’s average monthly Bitcoin hash rate, or the network’s computing power, accounts for 11.23% of the global total.

However, the central bank despised these plans. The spokesman said the bank “does not support an initiative to encourage the emergence of forex dealers”.

The reason why the Central Bank of Russia does not agree to legalize Bitcoin mining

The bank, which supports the development of a state-controlled digital currency, has urged the Kremlin to push for Chinese-style action and effectively ban cryptocurrencies. Nonetheless, business leaders, the above-mentioned ministries, and finance chiefs have pushed for adoption – a practice that has so far led to years of stagnation.

The head of the central bank, Elvira Nabiullina, recently warned against investing in “speculative cryptocurrencies”, adding:

“Cryptocurrency prices are very volatile and losses can be enormous. Central banks never give advice on where people should put their money. But in the special case of cryptocurrencies, tokens are definitely not a good investment option. “

Even so, the ministry’s deputy head of the digital economy division, Aleksey Minaev, was quoted as saying that the cryptocurrency mining industry “deserves respect and regulation” while claiming that “countries can get benefits in the form of taxes”. “While miners can” legalize their income “.

The Department of Energy agreed, but noted that miners may have to pay for electricity at a different tariff instead of being allowed to use the same tariff as domestic consumers.

The chairman of the State Duma’s Financial Markets Committee for Financial Markets, Anatoly Aksakov, has previously spoken out in favor of recognizing cryptocurrency miners as “entrepreneurs”.

Aksakov indicated that mining cryptocurrencies is not illegal under current regulations, adding that there is a need for more clarity on taxing miners’ profits.

Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and exchange information about the crypto currency market.

Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice in any way. Your money, the choice is yours.