Russian government proposed crypto mining tax reduction bill

Crypto mining has become a notable passive income source. In several nations, many seek to mine digital assets as their secondary source of income. Before last year’s Chinese crypto ban, the nation was leading with the majority of hash power. However, following the prohibitions in the nation, several miners migrated to more crypto-friendly nations across the world. Some of the miners also went to Russia, following which the government began to eye the industry. However, with the latest proposal for tax reduction it seems Russia is bullish on Bitcoin.

Russia seeks to attract more crypto mining farms

The Russian Ministry of Economic Development (RECD) has recently announced that the authority would cut a significant percentage of taxes on BTC mining activities within the region.

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Some reports published by the local  news outlets have further explained that the plans of the Kremlin government to encourage more mining investment within the region by mapping out strategic areas with electricity surplus designated for crypto miners. 

On the other hand, observers have denoted the latest measures as one of the major ways Vladimir Putin can position the region to harvest the utmost benefits from the buzzing cryptocurrency industry. Indeed, the government seems to attract more miners, although it is still hesitant about the acceptance of digital assets.

According to Elvira Nabiullina, the governor of the Central Bank of Russia, the bank will spare no effort to convince the government and go into more detail about arguments of which they see significant risks in digital assets.

Putin aims to control cryptocurrency

The Russian legislative arm continues to act on the charge to draw up a comprehensive guideline for digital currency regulations. However, it is yet uncertain that the government would adopt the contents of such regulations.

Still, experts believe that the Russian president remains unwavering in his decision to centralize and control all forms of crypto assets that would be issued or exchanged within the Russian territory. Besides, it is also rumored that the new law outlaws the activities of popular exchanges and data analysis platforms as the government fears that these firms could be weaponized as data mining tools for details about Russian citizens.