Russian Ministries Wants to Legalize Crypto Mining

The Central Bank of Russia opposed the Russian ministry, Duma, by considering associated risk in mining activity.
Russian Ministries Wants to Legalize Crypto Mining

In Brief:

  • According to the Russian Ministry, Crypto mining activity should be legalized in countries with regulations
  • Russian central bank doesn’t support this idea cause of big risk factor in crypto mining activity
  • The head of the Duma’s finance committee, Anatoly Aksakov wants to make clear rules for taxation 

According to a report from a local news website, Russia’s Ministry of Economic Development, the Ministry of Energy, and the State Duma stated that crypto mining activity should be legalized in-country and regulated as an entrepreneurial activity. 

Russia’s lower house of representatives wants crypto miners to be recognized as entrepreneurs. But the Russian Bank opposes this initiative as considering associated risk with crypto. Currently, Russia is the third-largest bitcoin mining country.

The economic ministry is confident that regulations will be beneficial to the country as well as crypto mining activity. Also, The government institutions want to implement a new classifying code for the crypto industry, which can be used for the mining industry to register companies.

Anatoly Aksakov, the head of the Duma’s finance committee quoted that crypto mining is legal in Russia and the Crypto mining industry. But, due to the complex taxation policy, it becomes difficult for companies to run business in a profitable manner. He suggested that  It is necessary to assign a classifying number to the industry and determine procedures for taxation.

After China’s crackdown and a ban on crypto mining activity, many crypto firms are searching for new places to relocate their business and run operations. Recently, crypto giant Huobi shifted their spot trading business to Gibraltar. If Russia makes crypto mining legalized in the country, then it would become a big opportunity for crypto mining firms. 

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