The Ministry of Energy of the Russian Federation is pushing lawmakers to acknowledge cryptocurrency miners as energy consumers and enact regulations. According to local reports, the next step in the framework might be imposing mining-related taxes.
As the Russian ministry advocates for the legalization of industrial crypto mining, deputy head Pavel Snikkars emphasized the need for lawmakers to move forward with related bills.
Russian Ministry Advocate Crypto Mining Legalization
In a significant development, the Ministry of Energy in Russia is actively pushing for legalizing industrial crypto mining. It is also calling for parliamentarians to act swiftly.
The Ministry’s Pavel Snikkars told Tass in a translated statement,
“We want miners as a category of consumers to be defined. We hope that taxation will also appear for this category of consumers. It is important for us that we can identify them, and we understand that certain regulatory features will have to be introduced for them.”
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The Deputy Minister’s speech makes it apparent that they want to include cryptocurrency miners in a separate category. A measure that might make better regulation possible as the official urges lawmakers to respond quickly. Snikkars also said they would limit the development of excessive power-producing capabilities for crypto miners.
Crypto mining has experienced a significant surge in Russia, putting strain on its current energy needs. In recent news, Russia has emerged as the second-largest Bitcoin miner globally, behind the United States. According to reports, the country’s mining power output grew to 1 gigaton in the first quarter of 2023.
Tax Revenue Expectation in Millions
The Russian Ministry of Finance believes that taxes from cryptocurrency mining might bring in more than $200 million a year for the government. BeInCrypto quoted Ivan Chebeskov, the department’s head of financial policy, who estimated generating mining revenue of about $1.1 billion. The official said the 20% market rate may generate significant tax contributions.
The mining sector in Russia was not recognized as a legitimate industry. The nation’s intentions for a national cryptocurrency exchange were also recently scrapped. However, Moscow is moving quickly to regulate mining as it concentrates on de-dollarizing its economy. However, President Putin underlined that, in contrast to the worries, Russia has no plan for de-dollarization.
The State Duma Committee on Financial Market’s Chairman, Anatoly Aksakov, believes that cryptocurrency mining in Russia may become legal by 2024. Aksakov emphasized the potential economic advantages of mining and voiced support during his speech at the St. Petersburg International Economic Forum.
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