Moscow is on the brink of legalizing its booming industrial crypto mining sector, thanks to strong lobbying efforts from major Bitcoin miners in Russia. According to Izvestia newspaper, the finance ministry is prepared to approve a draft bill that would officially recognize mining as a form of entrepreneurship.
If the State Duma gives its approval, miners will be required to pay taxes on their earnings and potentially higher energy costs. Despite this, most industrial miners in Russia are in favor of this move, as it would bring their industry out of the “grey” area it currently operates in.
Crypto currently has no legal standing in Russia, with the only existing legislation banning its use as a form of payment. The proposed bill aims to include “the mining of cryptoassets” in the government’s list of recognized business activities, providing miners with more security and clarity.
The Ministry of Energy is considering creating a new code for miners or adding their sector to an existing category, potentially aligning with the Central Bank’s evolving stance on crypto. While the bank previously advocated for a ban on crypto, it now seems more open to allowing cross-border trade firms to use tokens as payment tools under its supervision.
The industry ministry has recognized the significant growth and economic impact of the mining sector, which is predominantly focused on Bitcoin. With a legal framework for mining lacking in Russia, the proposed bill would provide much-needed regulation and define the practice of mining.
Investors are closely watching Moscow’s decision on the bill, as Russian mining firms have seen rapid growth due to favorable conditions. Industry leaders claim that the sector, which is primarily focused on Bitcoin mining, is now second only to the United States in size.
Overall, the proposed legislation would bring much-needed clarity and regulation to the industrial mining sector in Russia, potentially paving the way for further growth and investment opportunities.
