Russian Prime Minister Supports Cryptocurrencies Can’t Be Used As Legal Payment on April 7th

Russian Prime Minister Mikhail Mishustin has stated that the government fully supports the Central Bank’s viewpoint that cryptocurrencies cannot be used as legal payment in the country, but that cryptocurrency mining may be investigated.

For years, cryptocurrency legislation has been a hot topic in Russia, and digital currencies continue to be a murky area of the law. The Central Bank’s position, which called for a complete ban on cryptocurrency, complicated matters even further. Speaking in the State Duma on Thursday, April 7, Mishutin stated:

“We are against the recognition of cryptocurrency as a means of payment or money.”

The Prime Minister added:

“We also think that in order to stimulate investment, primarily in fixed capital, we can discuss mining issues, which includes the creation of data centers and related infrastructure.”

Last month, Russian Deputy Prime Minister Alexander Novak stated that legalizing cryptocurrency mining and adopting legislation to make it’s a legal business activity in the country would be more beneficial.

Anatoly Aksakov, the head of the State Duma Committee on Financial Markets, also revealed that cryptocurrency could be recognized as property this year. Amendments to the Tax Code are likely before the end of the spring session, according to Aksakov in an interview with the Russian news portal IZ. Previously, the Central Bank declared that using cryptocurrency to avoid sanctions was impossible.

With the legalization of cryptocurrencies, the shadow economy is projected to grow, with any profits from mining taxes and businesses involving digital assets potentially outweighing any gains from mining taxes and businesses involving digital assets. The regulator emphasizes that the implementation of cryptocurrency taxes is not in conflict with the Bank of Russia’s intentions.

“But it is important to understand that cryptocurrencies are actively used, among other things, to underestimate revenues and avoid taxes,”

said the regulator.

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