Private individuals mining cryptocurrency may expect a higher tax burden than businesses involved in the industry, a high-ranking member of the Russian parliament has indicated. While the extraction of digital currencies is yet to be regulated in Russia, authorities lean towards recognizing it as an economic activity, which will allow the government to tax mining profits.
Profits from Cryptocurrency Mining in Russia May Be Taxed Like Those From Securities
The personal income tax levy for individual crypto miners withdrawing their profits into the traditional financial system cannot be less than 15%, the head of the Industry Committee at the State Duma, Vladimir Gutenev, has recently stated. The lawmaker added that the minimum tax rate for companies or sole traders engaged in the minting of digital currencies as a business activity should be at least 6%.
Quoted by the business news portal Finmarket, Gutenev explained at a press conference that if cryptocurrencies are to be treated as securities in the Russian Federation, income tax must be paid when the mined coins are cashed out.
The deputy was referring to the mining rewards which can be received by both natural persons and legal entities. These payments for the processing of blockchain transactions are credited to cryptocurrency wallets. Miners can choose to convert the digital coins into fiat currency.
The legal status of crypto mining, and a range of other activities related to cryptocurrencies, is yet to be defined in Russia. A debate between government institutions is currently underway to determine Moscow’s regulatory approach.
The Central Bank of Russia proposed a blanket ban on operations such as the issuing, trading and mining of private digital currencies which it calls “money surrogates.” However, the monetary authority has found itself in isolation as the Ministry of Finance, other departments and regulatory bodies favor legalization under strict rules over complete prohibition.
The federal government, which sides with the finance ministry on the matter, prepared a regulatory roadmap for the sector and added mining to the document. President Vladimir Putin recently highlighted Russia’s competitive advantages as a mining destination while industry watchers have doubted that banning coin minting is practically possible.
Russia’s role in the crypto mining scene has increased since China launched a crackdown on the industry in May of last year. A study by the Cambridge Center for Alternative Finance ranked Russia third after the United States and Kazakhstan in terms of mining capacity. As of August 2021, the energy-rich nation accounted for over 11% of the global bitcoin hashrate.
Do you think Russia will legalize crypto mining and tax miners’ profits? Share your expectations in the comments section below.
Check live crypto rates here
Start trading today – See our list of exchanges
tadalafil 20mg kaufen ohne rezept viagra bestellen sildenafil kaufen generika
buy accutane 40mg for sale zithromax drug ivermectin buy australia
Great blog here! Also your web site loads up very fast! What web host are you using? Can I get your affiliate link to your host? I wish my website loaded up as fast as yours lol
Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!
altace 5mg sale avapro 150mg cheap cost azelastine
I discovered your blog site on google and check a few of your early posts. Continue to keep up the very good operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading more from you later on!…
Thank you for sharing superb informations. Your web-site is very cool. I am impressed by the details that you have on this site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the information I already searched all over the place and just couldn’t come across. What a perfect site.
You completed a number of fine points there. I did a search on the matter and found most persons will have the same opinion with your blog.
A person necessarily lend a hand to make severely articles I’d state.
That is the very first time I frequented your web page and
so far? I amazed with the research you made to create this actual put up incredible.
Wonderful job!