Russian Government To Recognize Crypto Miners As Entrepreneurs

2021-11-10 17:58:47
Russia Wants To Regulate Crypto

The Russian Government, or specifically the Ministry of Energy, is very close to recognizing crypto miners as entrepreneurs. According to the news by Izvestia, the Ministry of Economic Development of Russia states that crypto mining needs precise regulations, and to be part of the Civil Code.

And their counterparts at the Ministry of Energy seem very to accepting this idea.

Moreover, the deputy director of the Digital Economic Development within the Ministry of Economic Development, Alexey Minaev, believes that this is the decision. And that the greatest benefactor will be the state itself.

This is exactly an area in which the state can benefit in the form of taxes. And people can legalize their income, big business is also becoming more and more interested in this.Alexey Minaev | Deputy Director of Digital Economic Development

Similar to Alexey Minaev, the vice president at the Russian Association Cryptoeconomics, Valery Petrov, states that it is best for Russia to incorporate these regulations.

Especially since the majority of Russians that gain crypto profits, choose not to report the income in Russia. That is because proving that the funds are legitimate can be rather tricky in Russia.

Russia is responsible for 12% of the total $19.7b annual bitcoin mining in the world. This amounts to $2.4b, making it is very clear as to why the ‘sudden’ need to tax crypto miners. Even Mr Petrov himself says that Russia already lost millions as a result of failing to tax, i.e. regulate crypto.

Central Bank Opposition

However, it seems like at this moment, the Central Bank of Russia doesn’t support, nor promote the legalizing of as they call them, ‘monetary surrogates’.

In addition, the Central Bank also says that the Russian ruble is the sole legal tender that is recognized under Russian law.

The news about the Russian government pondering to recognize crypto miners as enterpreneaurs is definitely yet to get an ending.

On one side there is the Ministry of Finance which supports taxing crypto miners. On the other hand, the Central Bank clearly states that the ruble is the only lawful currency in the state.

Whatever the case, it seems like Russia is about to have a rather turbulent 2022, financially wise.

 

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