Chairman of the Russian State Duma Committee on Financial Markets Anatoly Aksakov insisted on establishing a registration and taxation system for cryptocurrencies mining companies, local media TASS news agency reported on the 8th.
Aksakov pressed on the need to regulate the crypto industry and asserted that Russian lawmakers have begun to review the crypto mining industry as a form of entrepreneurship as per the Russian business laws. He said in a statement:
“As this is a type of entrepreneurial activity, it is obviously necessary to include it into the state register, to regulate it as a type of entrepreneurship under an appropriate code, and impose relevant taxation.”
“We still need to discuss what digital currency actually is, although we call it currency, it is rather used as a financial instrument, or a financial asset that is a subject to investment, rather than a means of payment.”
The country’s industry group, the Russian Association of Crypto industry and Blockchain (RACIB), has also started a project to attract mining companies to Russia. Aksakov remarked that the authorities are aware of the demand for the relocation of mining businesses from China.
Discussing in depth the situation, Aksakov said that the government has been actively taking legal initiatives related to the crypto industry and is soon anticipated to approve bills for crypto taxation, mining, and digital currency.
He also pressed on the need for a clear definition of the concept and terminology of “digital currency.” He pointed out that some digital currencies are Central Bank Digital Currency (CBDC) and some are virtual decentralized currencies such as Bitcoin (BTC), and the distinction between them should be clarified to avoid confusion.
Nikita Soshnikov, a former senior lawyer at Deloitte CIS and director of Alfacash, noted:
“Practical implications for the industry will be limited to the business registration and tax obligations, of course, with a certain degree of official recognition as a legitimate business.”