Russian Ministry Proposes Cutting Taxes on Crypto Mining

Russian Ministry Proposes Cutting Taxes on Crypto Mining

Russian Ministry Proposes Cutting Taxes on Crypto Mining By DailyBitcoin Editor

The Ministry of Economic Development of Russia has the proposal to reduce taxes on crypto mining


The Ministry of Economic Development of Russia announced his proposal to reduce a significant percentage of taxes on mining activities in Bitcoin within the nation.

This announcement was reported by the Russian news source Izvestia. It also explains the government’s plans to encourage greater investment in mining within the region by mapping strategic areas with surplus electricity designated for cryptocurrency miners.

As part of the proposal, the ministry suggested introduce lower rates to establish mining farms and data centers in specific Russian regions, as well as offer reduced energy rates for such facilities.

The ministry also wants to set a cap on mining energy use by individuals and is reportedly proposing to introduce higher energy tariffs to increase energy spending. The authority has yet to determine a limit amount for this, the report said.

According to the ministry, the proposed new rules would eliminate the risks of insufficient power supply for homes, social facilities and infrastructure in other regions of the country.

In this way, the ministry proposed to recognize crypto mining as a commercial activity and incorporate its respective taxes.

In the midst of contradictions

Observers see the move as one of the main ways Russian President Vladimir Putin can position the nation to reap maximum benefits from the cryptocurrency industry, the outlet says. zycrypto.

Although, with this announcement, Russia seems to want to attract investments in mining, there is still doubt about its acceptance of cryptocurrencies.

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As we have said many times, Russia has had and continues to have an ambivalent position in relation to cryptocurrencies. Different government instances show very different and contradictory positions. On the one hand, the Bank of Russia He said in January that the ideal would be a total ban on the use and commercialization of digital currencies, precisely to prevent these assets from seeing utility as mechanisms to legitimize capital or undermine the sovereignty of the ruble. On the other side are personalities such as Minister Siluanov and the country’s deputy prime minister, Dmitry Grigorenko, who have a much more open position and are oriented towards adequate regulation.

Yesterday, the Minister of Finance, Anton Siluanov, was clearly in favor of cryptocurrencies. “Banning cryptocurrencies would be like trying to ban the internet…”Siluanov assured.

The country is already becoming a visible force to be reckoned with within the crypto market. According to reports shared by zycrypto, more than 12 million cryptocurrency wallets have been opened in Russia alone, containing close to 2 trillion rubles. Furthermore, Russia currently ranks third in the world in terms of global mining capabilities.

Sources: Izvestia, Cointelegraph, zycrypto, archive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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