Russians Are Now Allowed to Mine Cryptocurrencies on their Territory: What’s the Bad Part?
Great news! Russia has officially announced that users can mine cryptocurrency on the country’s territory. This activity will be conducted under the control and reporting of the regulations in force.
During the annual meeting of the Russian bankers, the deputy Olga Skorobogatova mentioned that “We offer to allow mining within the territory of the Russian Federation. For us, it is a kind of activity that can be supported…At the same time, the question of how the miners will exchange what they have mined is still debatable. We, as the Bank of Russia, believe that they still have to do this outside the territory of Russia”.
A representative of Central Bank of the Russian Federation has mentioned on 1 February 2018 that is legally to mine cryptocurrency, but also advises users to carry out all the transactions outside the country, meaning that they will have to bear a tax.
We want to remember you that the biggest and most influential bank in Russia- Sberbank is supporting the development of cryptocurrency. They have even invested in a blockchain laboratory with the purpose to test new technology solutions.
Last week, the Ministry of Finance has announced about the law, entitled “On Digital Financial Assets” which assures users that the crypto trading platforms will be secured and authorized. Currently, the law is published as a draft.
As we mentioned above, the miners are suggested to sell digital currencies outside the country. For this, they will need to pay a fee. Roman Buzko, Co-Founder of Buzko & Partners explained that “Miners, if they are obliged to sell outside of Russia, will receive currency from the sale of the cryptocurrency. As a result, if the legal entity of the miner is located within the territory of Russia, it will convert its foreign exchange earnings into rubles, as it happens, for example, in the case of oil sales, and from these incomes will pay taxes. So, from the point of view of taxes, the state will not lose.”
It seems that the Russian authorities want to have full control over the use of cryptocurrencies on the territory of the country. They plan to implement several laws that will ensure the security of their economy.
What’s your opinion about Russia’s regulation related to crypto technology?