Cryptocurrency Mining on the Cusp of Official Recognition as an Industry in Russia

In a groundbreaking move, Russia is contemplating the formal acknowledgment of cryptocurrency mining as an official industry, a development poised to revolutionize the sector. Authorities are deliberating on assigning a specific All-Russian Classifier of Economic Activities (OKVED) code to mining activities, indicating a significant shift towards embracing the crypto mining segment. This initiative, primarily propelled by the Ministry of Energy and backed by the Ministry of Economic Development, aims to legitimize and streamline the burgeoning industry. Despite some resistance, notably from the Ministry of Industry and Trade, a constructive dialogue has commenced, hinting at an impending decision within a month, according to Iz.

The proposal to assign OKVED codes to crypto mining endeavors marks a pivotal step towards regulatory clarity and industry growth. Not only would this facilitate accurate taxation and compliance, but it also promises enhanced state support and investment attraction. With Russia ranking second globally in cryptocurrency mining volume, this regulatory advancement could catapult it to the forefront of the mining world, potentially surpassing the United States. However, the move also raises concerns about increased administrative burdens and the possibility of some miners preferring to operate under less regulated schemes. Ultimately, integrating OKVED assignments within the broader legislative framework of mining regulation could ensure a balanced approach to nurturing and overseeing this dynamic industry.