Russia Gears Up for Crypto Mining Legalization, Eyeing $4 Billion Revenue Stream
Russia’s top lawmakers are busy shaping the future of crypto mining. Head of the Committee on Financial Market, Anatoly Aksakov, reveals plans for legalization in a recent statement. If all goes to plan, mining could become a legal activity in Russia by 2024, according to the вопросы-президенту.рф.
Aksakov shared his insights at the St. Petersburg International Economic Forum. He believes that mining has the potential to become a major economic asset for Russia. To this end, lawmakers are preparing four bills, all related to the crypto industry.
The Russian State Duma is set to debate these initiatives before the end of July. If approved, the bills will legalize mining in the country by next year. The bills focus on the regulation of mining, the creation of experimental-legal regimes, the taxation of miners, and penalties for illegal mining.
However, there’s a catch. Mined cryptocurrencies will only be legal for cross-border transactions with foreign partners. Within Russia’s borders, the use of such currency will remain illegal. Despite this limitation, Aksakov believes the legalization of mining is important for existing businesses in this sector.
Russia is no stranger to mining, with the country’s miners currently mining $4 billion worth of cryptocurrency. Ivan Chebeskov, head of the Financial Policy Department of the Ministry of Finance, estimates this could translate to a profit of about 100 billion rubles. If taxed at 20%, this would add a hefty 20 billion rubles to the federal treasury.
Chebeskov also encourages Russians to explore the potential of cryptocurrency. He believes digital financial assets could compete with traditional financial instruments. He estimates the value of crypto-assets owned by Russians at 10-15 trillion rubles. Without this capital, the digital financial market could struggle to keep pace with its traditional counterpart.
Subscribe to our Telegram channel! Only the most interesting stuff there
