Russian officials want to recognize crypto mining as business

The Russian Chamber of Commerce wants to categorize the crypto mining operations as a business. 

Russia is a crypto-friendly country. However, the central bank of Russia doesn’t want to see crypto circulation in the Russian Federation and also wants to impose a blanket ban but still, crypto mining operations are a better option for the country to generate revenue, in the present time in competition against other countries’ high-cost electricity. The Russian finance ministry is also in favor of crypto adoption. 

According to the local news media outlet of Russia, Sergey Katyrin, Head of the Russian Chamber of Commerce and Industry, sent a letter to the Russian finance ministry to recognize crypto or Digital assets-based mining companies under the business category. 

According to Sergey, Crypto mining should be ejected out from the gray region, to bring clarity on the tax and payment systems. 

Sergey believes that the country needs to change its stance on the crypto industry, and also new proposed rules will kick out the tension of illegal use of electricity in crypto mining operations. 

“the legal status of cryptocurrency produced by miners and its further circulation” and “the legal status of cryptocurrency as a payment instrument.”

He also asserted that there is a huge need for research on the Sovereign currency and the value of crypto assets. 

“It is practical to study the experience of countries where cryptocurrency is a digital expression of value and is not a means of payment, while cryptocurrency exchange for goods is treated as a barter transaction.”

This situation for the crypto mining industry in Russia is arising because of the partial crypto bill of Russia, introduced on 1 January 2021. Under the crypto bill of Russia, many parts of the Russian crypto industry were forbidden and also crypto mining was one of the main missing components. 

Due to lack of clarity, in absence of any bill or laws for the crypto industry, government agencies as well as crypto mining firms are not able to tackle the regulatory issues against their operations. 

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