Russian Crypto Miners Should Be Legitimized, Say Local Ministries

The Ministry of Economic Development, the Ministry of Energy, and the State Duma want cryptocurrency mining in Russia to be a legalized business regulated as an entrepreneurial activity. However, the country’s central bank opposed such a move, citing the risks related to digital asset endeavors.

Russian Crypto Mining Deserves “Respect And Regulation”

According to a local report by Izvestia, some Russian authorities believe cryptocurrency mining needs to have a comprehensive regulatory framework, while miners should be treated as entrepreneurs.

The Ministry of Economic Development, among other entities, urged for such a move. It predicted that implementing taxation procedures on crypto mining could boost the state budget revenue and intends to present specific ideas in this area soon:

“Recognition of mining as entrepreneurship will allow taxing income from such activities and, accordingly, increase state budget revenues.”

Aleksey Minaev – Deputy Director of the Digital Economy Development of Mineka –  opined that the cryptocurrency mining industry deserves “respect and regulation.” If that policy becomes a reality, the Russian state will benefit in the form of taxes, while people will be able to legalize their income. Large corporations will also become more interested in the area, he concluded.

The next in line to support the idea was the Ministry of Energy, but it demanded that miners should declare the nature of their consumed energy.

In his turn, Anatoly Aksakov – head of the State Duma – reminded that digital asset mining is not banned in Russia but lacks clear taxation rules. As such, he urged the local watchdogs to enhance regulatory clarity and proposed miners to be charged with higher electricity tariffs than other consumers.

Nonetheless, the idea had a major opponent in the face of the Bank of Russia. According to the financial institution, digital assets and activities related to them are risky, and the nation should avoid operating with them.

Elvira Nabiullina – the Chief of Russia’s Central Bank – recently described bitcoin and the altcoins like “speculative cryptoassets” as dealing with them is more dangerous than any other investment strategy.

Russia – One of The Crypto Mining Leaders

Despite Russia’s controversial stance on digital assets, cryptocurrency mining is flourishing in the country mainly due to its vast size and endless energy resources.

The decline of the Chinese hash rate share after the most-populated nation reiterated its crypto ban has allowed many others to increase their presence. Such was the case with the Russian Federation, which became the third-largest digital asset mining location accounting for 11.2% of the global share.

The undisputed leader is the USA, responsible for 35% of the hashrate, while Kazakhstan holds the second position with 18.1%.