Russia weighs in on taxation of digital currency miners
Cryptocurrency mining is expected to be recognized in Russia as a legal business activity, which would make it possible to impose and regulate taxes on minors, several Russian officials said on Monday. cited by the newspaper Izvestia.
Although this activity is not prohibited in the country, the principles of its tax base remain unclear, since the law on digital financial assets refers to “the issuance of digital currencies” but does not mention its mining, which does not is also not listed in the classification. types of economic activities in Russia.
As noted by the Russian Ministry of Economic Development, since digital currency mining could fall under the definition of business activities, it should be treated as such and regulated accordingly. This, in turn, would allow increase state budget revenue, they feel in said entity.
According to Alexei Minayev, deputy director of the Digital Economy Development Department of this body, cryptocurrency mining deserves “respect and regulation”. “This is precisely an area where the state can receive tax benefits and people can legalize their income. Big companies are getting more and more interested in it, ”he said.
It is clarified that the possible legalization is currently an issue that the Ministry of Economic Development is discussing with the business community, whose representatives hope to present concrete projects in the near future. According to Russian media sources, the country’s Energy Ministry and the State Duma also supported the initiative.
However, the idea was strongly rejected by the Central Bank, which made it clear its refusal to legalize the circulation of cryptocurrencies in Russia, saying it could foster the emergence of “Money substitutes”.
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