Cryptocurrency mining should be registered as a business activity and taxed as such, according to Anatoly Aksakov, chairman of the Russian Parliamentary Financial Markets Committee. Legislators also believe that Russian digital currency regulations need to be refined.
Changes likely to affect mining, taxation, and the definition of digital currency
With the upcoming changes in the legislation on digital currencies in Russia, the head of the State Duma financial markets committee, Anatoly Aksakov, expressed his opinion that the mining of cryptocurrencies should be included in the Russian register of business activities and taxed accordingly.
The treatment of crypto mining and the taxation of operations related to cryptocurrencies are among the areas likely to be affected by the legislative changes due to be passed during the autumn session of the Russian parliament. Speaking to the Tass news agency on the sidelines of the Moscow Financial Forum, Aksakov said this week:
Since this is a business activity, it is of course necessary to enter it in the register, assign a corresponding code and introduce taxation.
The MP was positive about the fact that changes in digital currencies are to be expected, since the Duma has already passed a law on the taxation of “actually crypto currencies” in its first reading. Earlier this month, the chairman of the Law Committee, Pavel Krasheninnikov, told Interfax that he hoped the law would land again in the House of Commons in the coming months.
Anatoly Aksakov further noted that the use of the legal term in relation to cryptocurrencies as it is now defined creates confusion. The concept of “digital currency” can refer to a central bank digital currency (CBDC) issued by the Bank of Russia, but it can also be understood as cryptocurrency, the legislator explained. Aksakov thinks the two should be clearly distinguished.
The Chair of the Financial Markets Committee insisted that further discussion is needed to determine what “digital currency” actually means. Although cryptocurrency is referred to as digital currency in Russian law, Aksakov indicated that it is used as a financial instrument and asset for investment purposes rather than cash.
The senior member of the Russian Parliament added that the Bank of Russia’s powers to issue a digital ruble and maintain its circulation should also be established. The monetary authority announced a plan to digitize the national fiat currency last October. The central bank is preparing to release a prototype of the CBDC by the end of this year.
What are your expectations of the upcoming legal changes regarding cryptocurrencies and related activities in Russia? Let us know in the comment section below.
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