VOT Research Desk
In Russia’s most recent effort to incorporate digital assets into its economy, the law would establish a domestic cryptocurrency market and offer a legal definition of mining and mining pools.
On November 17, a bill to allow cryptocurrency mining and the selling of the cryptocurrency mined was submitted to the State Duma, the lower house of the Russian parliament. Russia presently prohibits the usage of cryptocurrency for settlements.
According to the proposed law, Digital currency obtained through mining may be disposed of by the person who carried out the mining of this digital currency, provided that Russian information infrastructure is not used in transactions involving it, with the exception of cases in which transactions are carried out in accordance with the established experimental legal framework. according to Interfax.
Anatoly Aksakov, the chairman of the Duma Financial Markets Committee, stated to the neighbourhood media that he anticipated the legislation to pass all three parliamentary readings in December and enter into law on February 1.
According to several reports, the bill would become a law on January 1. Aksakov said:
Passage of the law will bring this activity into the legal sphere, and make it feasible to develop a law enforcement practise on matters relating to the issuance and circulation of digital currencies.
The experimental sales regime is made feasible by the law on digital innovation passed in 2020. Mining pools and cryptocurrencies are defined under the bill. Additionally, it outlaws cryptocurrency advertising in Russia.
The establishment of a Russian cryptocurrency trading platform Russian miners will be free to use international platforms if the law is approved.
The transactions in the latter scenario would not be subject to Russian currency controls and regulations, but they would still need to be reported to the Russian tax office.
Despite the fact that cryptocurrency mining is common in Russia, there is presently no legislation governing the taxes of mining activities.
