The latest proposal from the Russian government aims to regulate cryptocurrency mining as a commercial activity. It also states that the miners will pay taxes on realized profits. Russia’s Ministry of Economic Development proposed that crypto mining become legalized in areas with a sustainable surplus of electric power.
Added Benefits for Miners and Social Facilities
The ministry also suggested lower fees for mining farms and data centers and reduced energy rates. This move will help the government establish power use limits for individual miners and impose higher rates for increased energy spending.
The newly proposed rules will also leave enough power supply for the housing, social facilities, and infrastructure in other country areas.
This proposal arrived in a time of uncertainty regarding crypto regulation in Russia. Different parts of the government are still arguing about how to regulate Bitcoin and other digital assets.
Russia’s Ministry of Finance has been actively advocating for the crypto regulations while the Russian Central Bank was aggressive in insisting that crypto transactions should be banned. Additionally, the Bank didn’t support the government’s decision on crypto regulation from February 8.
Moreover, the Bank’s spokesperson noted that this institution would remain opposed to crypto adoption in Russia.
On the other hand, other major financial institutions have supported the latest crypto regulations and efforts to make cryptocurrency mining and use legal.