Russia Set to Introduce Regulations For Crypto Mining

Russia has revealed plans to introduce regulations for crypto mining ventures within the country. Earlier in January, Russian authorities had passed a law that sought to regulate the use and adoption of cryptocurrencies. Now as crypto advocates in Russia continue to advance a cause for the operations of miners within the country, authorities have indicated their willingness to regulate crypto mining as well. 

Chairman of Russia’s legislative committee on financial markets, Anatoly Aksakov pointed out in a recent statement that Russian legislators were deliberating on classifying crypto mining as a form of entrepreneurship under the country’s local laws. He further noted that it was important to include it in the state’s register and impose taxes on mining operations. 

Chairman of Legislative Committee Says Crypto Needs Regulatory Clarity

After revealing that authorities were glossing over several bills for mining, taxes and digital currency issuance, Aksakov concluded with the need to lighten the gray areas on regulations for cryptocurrencies. Offering his opinion on what cryptocurrencies represent, Aksakov noted that they are rather used as a financial tool or meant for investments than as a means of payments.

Reiterating Askakov’s words, Nikita Soshnikov, a former senior lawyer at Deloitte CIS asserted that regulatory implications for the sector would mean that ventures would have to be registered, taxed and licensed indicating a formal acknowledgement of these ventures by authorities.

Russia’s January law failed to cater for taxes, crypto mining, and guidelines for holding cryptocurrencies. The law entitled ‘On Digital Financial Assets’ cf addresses the use of Bitcoin and other crypto assets as a payment means, prohibiting it. Also, it clothes cryptocurrency investments with a toga of legitimacy 

In a September 7 publication, it was reported that Russian authorities are unwilling to accept Bitcoin as a legal tender like El Salvador, noting that it would ruin the country’s financial system. This aligns with a previous statement from Anatoly Aksakov that doing so translates to the destruction of a financial system. 

Russian Investors Prefer Crypto, Poll Reveals 

Earlier in September, a survey report found that 77% of investors in Russia had developed more preference for Bitcoin as against forex and Gold. The report also noted that they now considered the digital asset less of a hype product and more of an investment product. 

Of the 502 investors interviewed, 8.8% asserted that investing in gold was the best while 14% noted that they were more comfortable with fiat currencies. A survey in 2020 by the World Gold Council showed that cryptocurrencies were one of the most popular investment products in Russia behind real estate and others. 

However, the Bank of Russia is not willing to place a bet on crypto. According to its governor, Elvira Nabiullina, cryptocurrencies highlighted the dangers of crypto investments. Later in August, an executive of the apex bank argued that crypto investment was just like being in a minefield. Meanwhile, the bank continues to work on a digital ruble for the country.