Russia establishes a commission to legalize cryptocurrency mining.

A Russian legislature has formed a committee tasked with developing legislation for the cryptocurrency mining business. Andrei Lugovoy, the First Deputy of the Representative Committee on Security and Anti-Corruption, announced the formation of the group.

Lugovoy said that MPs had already developed a draft bill that they will propose in the Duma “without fail,” and that Bitcoin mining regulation had become inescapable. They allege that miners make $2 billion in the nation each year without paying taxes. The parliamentarian said.

We have prepared a bill and we will introduce it without fail,”

According to Lugovoy, because there is no restriction on the manufacture of cryptocurrencies, law enforcement authorities are often at a “dead end” because they cannot demonstrate indicators of a crime.

Volodin recently stated that the subject of cryptocurrency mining in Russia has grown important as miners migrate from China. Russia and Kazakhstan are currently two of the top three nations in terms of global hash rate on the Bitcoin network.

Increased power costs for cryptocurrency mining

Anatoly Aksakov, the chairman of the Duma’s Finance Committee, stated that while crypto mining was not prohibited in Russia, the regulations governing taxes were unclear.

He stated that the industry needed to be assigned a classification number and taxes processes established. He also urged that miners be charged higher electricity rates.

Because of its low retail energy prices, the Irkutsk region is already a local Bitcoin mining hotspot.

Energy-rich Kazakhstan, which is generally bountiful in power, has begun to face a shortage due to a significant increase in the number of cryptocurrency miners working in the nation. Officials are now looking at importing electricity from Russia’s neighbor.

Patrick

Coincu News