Russia is further planning to regulate cryptocurrency mining after legalizing its broad crypto industry in January.
As Russian cryptocurrency lawyers are working towards attracting global crypto mining operators, local legislators have become more serious about controlling the industry.
The chairman of the Russian State Duma Committee on Financial Markets Anatoly Aksakov said that the members of the Russian legislature now hope to recognize the crypto mining industry as a business under local business laws, as reported by TAS news on Wednesday.
“As it is a form of entrepreneurial activity while referring to crypto mining-related activities, it is imperative to include it in the state number, regulate it as an entrepreneurship under the appropriate code and impose relevant taxes”.
He further said that the government was active in several legal initiatives related to the crypto industry and would continue to move forward in the future for the issue of crypto taxation, mining, and digital currency. Aksakov also noted that there is a serious need for more regulatory clarity on workarounds about digital currencies in the country.
As per a former senior lawyer at Deloitte CIS and director of Alfacash Nikita Soshnikov, “The practical implications for the industry are limited to business registration and tax liabilities.
While back in January 2021, Russia officially banned the use of cryptocurrency as a payment method as part of the “Digital Financial Assets” Act to regulate cryptocurrencies such as Bitcoin (BTC). While when cryptocurrency investments were officially legalized in the nation, the law did not provide clear restrictions on many specific operational industrial areas, such as tax, mining, and holding and reporting rules on firms’ crypto holdings.
As of now, The Russian State Duma passed a special bill on cryptocurrency in the first planning session in February, it will be requiring residents to report total crypto transactions of more than $7,800 per year.
In August, the Judicial Council of the Russian Federation issued an official statement on the right of Russian judges to obtain crypto. The Authority specifically ordered that the possession of cryptocurrencies should be avoided, citing further local court regulations.