The Russian parliament has said that it wants to “resolve all legal issues with cryptocurrency” and that it will do this by defining legal terms for crypto assets, mining, and more. It has also been noted that it is time for miners to start paying taxes on their crypto earnings.
Per the Parliamentary Gazette, legal clarity in terminology will be a priority for the Duma. The Duma wants crypto-related businesses to be more transparent and predictable while, at the same time “boosting the revenue base for the state” in the form of further taxation.
The vice-speaker of the State Duma, Russia’s parliament, Alexey Gordeyev, has been appointed as the head of a working group. The group has been tasked with preparing proposals “on the legislative regulation of the circulation of cryptocurrencies in Russia.”
Along with MPs, the group comprises industry figures, regulators, members of the government, and representatives of the Russian Central Bank.
Crypto mining has become an increasingly significant issue in Russia. Mining is neither legal nor illegal in Russia, and operates in what most analysts call a legal “grey area.”
A number of Russia’s provinces have complained that miners consuming electricity on subsidised domestic-use prices are placing a strain on their power networks. The state has responded by creating a workaround that allows local power providers to raise power rates for certain groups or individuals, including crypto miners.
Industrial miners in Russia have repeatedly called for the government to legalise the industry. They also say that they are willing to pay tax on their income if it means they will finally be recognized as bona fide businesses.
The vice-speaker stated that the group “first needs to work on conceptual apparatus” and has created an “expert council” that will work on creating this. The group will meet once again in February to discuss matters further.
Meanwhile, Anatoly Aksakov, the head of the Duma’s Financial Markets Committee and the man charged with brokering agreement and formulating crypto legislation, was quoted as stating:
“Mining generally creates problems. I have had appeals from [local government authorities] in Irkutsk. They complain that miners are paying for the electricity they use on the same basis as ordinary citizens, although they are engaged in entrepreneurial activity.”
He added that “taxation has not yet been defined” for the sector – something that needed to be addressed with legal change.
Aksakov warned that although crypto had presented a range of new opportunities, it had also found a niche in the world of drug trafficking, terrorist operations, and corruption.
Aksakov said he believed Russians had invested a cumulative total of some $65.5bn in what he termed the “unregulated” crypto market.
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