Cryptocurrency, News, Regulation

Russian Authorities Intend to Tax and Regulate Bitcoin Mining in Certain Areas

This plan aims to recognize commercial mining operations and raise taxes on their profits. Even as the Russian government continues to work on a control mechanism for digital assets, a federal ministry in the Russian government has presented a proposal on cryptocurrency mining.

Russia’s Ministry of Economic Development permits crypto mining

According to a state news service (Izvestia) on Tuesday, the Russian Ministry of Economic Development adopts Crypto mining rules. The Ministry of Economic Development has also proposed allowing crypto mining activities in certain districts with a stable excess of electricity. 

The concept was to charge lower costs for setting up mining and data center farms in particular parts of Russia. The proposal also states that such installations will require a lower energy tariff. A limit will be set on individuals ‘ power use by pledging to usher in high energy prices in exchange for higher energy expenditure by the ministry. According to the article, the authority has yet to determine the project’s budget.

At the same time, thanks to the newly proposed standards, power for housing, social services, and infrastructure in other parts of the country will remain safe and consistent. The ministry has also classified and accepted cryptocurrency mining as a commercial operation. It has also proposed that taxes be levied due to its revenues.

Russia’s Finance Ministry and the Bank of Russia Are at Odds

While several sectors of the Russian government are still debating how to regulate Bitcoin, the proposed plan adds to the currently looming ambiguity regarding cryptocurrency governance and administration in Russia.

According to previous reports, Russia’s finance ministry has been pursuing the advocacy and control of activities in the Crypto industry. The Bank of Russia, on the other hand, is working in the opposite direction as the Russian Finance Ministry, urging a ban on crypto transactions due to investor protection concerns.

Elvira Nabiullina, the governor of the Bank of Russia, has stated that the bank does not endorse the government’s authorization of crypto legislation, which was revealed on February 8. Elvira Nabiullina went on to say that the bank will indeed continue to oppose Russia’s cryptocurrency adoption.

On Friday, the Russian state and central bank will introduce a combined crypto regulatory law. Recently, certain financial institutions with official backing have begun to express support for the idea of crypto regulation.

Anatoly Popov, the vice-chairman of the executive board at Russia’s banking powerhouse Sber, likewise favors regulation over prohibition. He went on to say that the government’s stance on cryptocurrency is consistent. He keeps the move for regulation rather than prohibition. He went on to say that.

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