Russia’s Crypto Mining Legalization to boost state revenues by $570M
After years of deliberation on cryptocurrency mining regulation, Russian lawmakers are poised to vote on legalizing industrial crypto mining. Parliamentarians estimate that this move could provide the Russian Treasury with a $570 million boost.
According to reports, the bill will be presented to the State Duma this week. Top politicians anticipate that it could be fully adopted before the current session ends on August 5.
Russia’s Crypto Mining Legalization: New Regulatory Framework
Industry insiders told Izvestia that bringing the crypt mining industry “out of the shadows” will not only foster its development but also offer Russia new cross-border settlement options. The report claims that industrial crypto miners have the potential to generate around $2.8 billion in net liquidity for the country.
The majority of Russian crypt miners focus on Bitcoin (BTC), though some also mine tokens like Litecoin (LTC). The estimated $570 million boost is expected to come primarily from tax revenues. Currently, mining lacks legal status, so industrial players do not pay taxes on their profits. Miners are eager to see this change, confident that the benefits of future investments will outweigh any new tax liabilities.
Long-awaited Legislation Nearing Approval
Izvestia notes that the crypt mining bill was initially prepared a year and a half ago and has undergone several revisions. It has now reached the State Duma following President Vladimir Putin’s directive last week. The bill’s first reading is expected to pass smoothly, though politicians may introduce amendments before its second and third readings.
Valery Seleznev, the first deputy chairman of the State Duma Committee on Energy, stated that he anticipates the bill will be passed by the Russian lower house in the remaining week and a half of the spring session.
Key Provisions of the Proposed Legislation
The current version of the bill includes several significant measures:
– Income Declaration: Crypto miners will be required to declare their earnings.
– National Registry: Regulators will establish a national registry of approved crypto miners.
– Regulatory Framework: The government, in collaboration with the Central Bank, will create a set of rules for crypto miners.
– Compliance Monitoring: A new federal executive body will be established to monitor compliance with these rules.
This legislation marks a significant step towards formalizing the crypto mining industry in Russia, with potential economic benefits for the nation.
