The head of Russia’s Chamber of Commerce has sent a letter to the country’s Finance Minister. In it, he called for crypto mining to be recognized as a business and for studies of cryptocurrencies as a “digital expression of value.”
Russia’s Chamber of Commerce has recommended to the government that it should legalize crypto mining and recognize it as a business. Russian media outlets reported that the Head of the Russian Chamber of Commerce and Industry Sergey Katyrin sent a letter to Finance Minister Anton Siluanov, asking it to be taken out of a ‘gray zone.
Katyrin said it was necessary to change current views on crypto, bringing out of that gray zone, enforcing taxation, and other compulsory payments. This will also make it possible to “defuse tension on matters of illegal electricity use,” the letter reveals.
The head of the organization also said that lawmakers must think about,
“the legal status of cryptocurrency produced by miners and its further circulation” and “the legal status of cryptocurrency as a payment instrument.”
He emphasized the sovereignty of the ruble and that crypto’s value as an asset would have to be studied, saying,
“…it is practical to study the experience of countries where cryptocurrency is a digital expression of value and is not a means of payment, while cryptocurrency exchange for goods is treated as a barter transaction.”
Russia has not been as active as some other countries in proposing rules for the crypto market. India, for example, has established a 30% taxation on crypto, while China has banned the asset class altogether.
Is Russia working towards a legal framework for crypto?
Russia has had something of an ambivalent stance on the crypto asset class. It does not and will not ever consider bitcoin as legal tender, according to the country’s officials. The Russian central bank has suggested banning crypto, though this received heavy public backlash.
However, recent developments have been more positive. On Jan 28, Russian authorities collectively agreed to form a roadmap for crypto regulation. This group consisted of the finance, economy, digital, and interior ministries, according to the FSB security service.
President Vladimir Putin has asked lawmakers to come up with a consensus on the matter, after all of these conflicting reports. Approximately 7% of the Russian population own cryptocurrency, according to Finery Markets, so regulation may become a priority as adoption grows.