Recognition of crypto mining will also allow the government to officially tax miners, a State Duma official said.
Russia is likely to see the cryptocurrency mining industry regulated under the country’s broader local business laws if an initiative by lawmakers gets legislative approval, reported the press agency TASS.
The decision to recognize cryptocurrency mining as an entrepreneurial sector in the country was revealed by Anatoly Aksakov, chairman of the State Duma’s Financial Markets Committee in the Federal Assembly.
According to Aksakov, cryptocurrency mining is “a type of entrepreneurial activity,” which he says needs to be added to the country’s business register. Once done, the Duma official says he should be properly regulated under the law and added to the tax bracket.
In this regard, the lawmaker noted that several bills on crypto mining, taxation and the issuance of digital assets were under development and would soon be debated.
The official also stressed the need for regulatory clarification regarding the use of the term digital currency. He suggested that a clear distinction be made between cryptocurrencies and central bank digital currencies. But more often the term “Digital currency” is used in reference to cryptocurrencies.
According to the executive of the State Duma, a digital currency is indeed a financial instrument and not the commonly used meaning of money. As such, digital currencies are targeted as investment instruments and not “As a means of payment”, Aksakov said in comments published by the agency TASS.
These comments come a few months after the establishment by Russia of a regulatory framework on crypto-currencies which specifies the use of digital financial instruments. According to the legal document, cryptocurrencies such as Bitcoin (BTC) are not considered a means of payment.
The country also recently made it clear that it does not plan to adopt Bitcoin as legal tender, a move that has been etched in history this week by El Salvador.
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