Russia Wanted To Legalize Bitcoin Mining In Some Areas

The proposal was made to introduce taxes on crypto mining realized profits and to recognize it as a commercial activity.

As the Russian government working out a regulatory framework for digital assets, another proposal regarding the crypto mining industry has been made by a federal ministry.

On Tuesday a local news agency Izvestia reported that the MED (Ministry of Economic Development) in Russia has allowed the concept of regulations for crypto mining in the country and proposed to allow the operations of mining in the areas which have sustainable surplus electricity generation.

The ministry suggested the introduction of lower fees for making setups of data centers as well as mining farms in specific regions of Russia as a part of the proposal, also offering reduced energy rates for these facilities.

The report noted that the ministry wanted to establish the limit on power use for mining by the individuals and proposed to introduce higher rates for increased energy spending. The threshold amount for this is yet to be determined by the authority.

The new proposed rules would eliminate the risks of insufficient power supply for infrastructure, social facilities, and housing in the other regions of the country, according to the ministry.

Furthermore, it is reported that the ministry has proposed to recognize cryptocurrency mining as a commercial activity and will be introducing taxes on realized profits from crypto mining.

The new proposal comes aiming at the ongoing uncertain crypto regulations in Russia, where different government parts are still arguing on how to regulate Bitcoin (BTC).

As per previous reports, the Bank of Russia has aggressively insisted to ban the crypto transaction, considering the investor protection risks, while the finance ministry of Russia has been advocating for regulating the crypto industry. Even the Russian government previously gave approval of the concept of cryptocurrency regulation on February 8th, later Elvira Nabiullina Governor Bank of Russia declared that the bank could not support the government decision and continued to oppose the crypto adoption in the country.

A joint crypto regulation bill is expected to be introduced by the government and the central bank on coming Friday.