Russia is taking decisive action to establish regulatory frameworks for its cryptocurrency mining sector. Recently, government officials and industry representatives gathered at the first Industrial Mining Association (IMA) forum in Moscow to address critical issues impacting the industry.
What Tax System Will Crypto Miners Follow?
On October 14, the forum attracted around 70% of the nation’s cryptocurrency mining operations. The main focus was on taxation, legal frameworks surrounding mining, and how cryptocurrencies influence international trade.
A proposed two-tier taxation model from the Federal Tax Service (FTS) was a significant discussion point. This model suggests that miners would make an initial deposit after receiving cryptocurrencies in their wallets, followed by an additional tax upon selling their assets.
FTS representative Alexey Katyayev mentioned, “A final decision on the tax structure remains pending. However, mining activities will not incur VAT, while individual miners will be liable for income tax on their gains.”
How Will Cross-Border Payments Be Managed?
Another major topic was the potential use of Russian cryptocurrency mining for international payments under the Experimental Legal Regulation (ELR). The Central Bank of Russia is actively working on infrastructure to facilitate these cross-border transactions.
Differing views emerged, with some attendees questioning whether domestic mining could meet export demands, while others proposed using alternative financial digital assets created for international markets.
Deputy Chairman Anton Tkachev asserted, “The anonymity of this initiative is crucial to avoid penalties and maintain the competitiveness of Russia’s mining sector.”
To boost transparency, the FTS suggested the establishment of a national registry for cryptocurrency mining operations. This registry will require mining companies to disclose information about their facilities, energy use, and equipment sources.
- The registry aims to enhance compliance and oversight.
- Confidentiality will be maintained for much of the reported information.
- The focus on transparency is intended to foster trust within the market.
The consensus among forum participants was that the future of cryptocurrency mining in Russia appears promising, provided that regulations continue to develop effectively. Industry leaders believe that establishing the necessary infrastructure will unlock new opportunities for growth in the coming years.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/russia-sets-new-cryptocurrency-mining-regulations