Russia to License Cryptocurrency Miners and Tax Mining Income

Russian Law Makers Seek Out New Path To License Cryptocurrency Miners

The financial regulators of Russia have understood very well that imparting proper license to cryptocurrency miners is the best alternative for gaining from the dynamic digital tokens. This realisation came in the aftermath of a meeting conducted along with Russian President Vladimir Putin wherein they agreed in unison to bring along regulation into cryptocurreny mining field. Creation of a cryptocurreny miner’s registry was proposed last week by the Russia’s finance ministry.
Anatoly Aksakov, the head of the Committee on Financial Markets recently shared his views:

“If we talk about mining, then this is a large consumption of electricity, it is obvious that it is not difficult to track. I do not see any problems here”,during a radio broadcast of Says Moscow station on Thursday.

He also added that the government is presently busy crafting the taxation guidelines for these cryptocurrency miners who, :

“receive quite a large income. This income should be taxed. It is also important that the concept of cryptocurrency be defined: either as a financial instrument or as a commodity. Proceeding from this, taxation will be determined.”

Alexei Moiseyev, the Deputy Finance Minister shared his view regarding licensing with reporters last week that it:

“may be handled by the Federal Tax Service (FTS). The main task of licensing is for tax purposes, so, perhaps, the Federal Tax Service will do this, but it has not been discussed.”

The cryptocurrency miner’s registry proposed to be created by finance ministry shall pave the path for both individual entrepreneurs and approved entities to become a part of mining activity. Yana Pureskina, the Director of the Financial Policy Department under the country’s Financial Ministry feels that the registry needs to be there,“in order to counter money laundering and terrorist financing.”

There is much doubt among Russian law enforcers regarding their future path of action. Andrey Koptelov, the director of the Center for Economic Research at Synergy University was quoted by RIA Novosti as saying, :

“the prohibitions of cryptocurrencies and their mining are useless, therefore, the only option for countries is to increase the transparency of this area by participating in international initiatives to register crypto exchanges and oversee their work.”

Also Read: Electricity Companies in Russia To Provide Support To Cryptocurrency Miners

Artem Tolkachev, the Chairman of Russia’s Blockchain Community and Head of Legal for Tech Group at Deloitte CIS was quoted by the publication as saying,:

“It should be noted that mining in Russia is not prohibited at the moment. So it’s not entirely correct to raise the issue of its resolution, rather, we should speak about the appearance of certain rules for accounting for cryptocurrencies and, possibly, the introduction of a special regime for the activity of the miners.”

Roman Tkachuk, a senior analyst at Alpari forex firm also expressed his views regarding the imposing of regulations for preventing the malice caused through money laundering wherein he stated,:

“Not all miners are engaged in money laundering and the financing of terrorism. We need to separate the ‘wheat from the chaff’. One of the features of cryptocurrency is anonymity and lack of regulation, therefore the implementation of such initiatives will face significant difficulties.”

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