The government of Russia is coming under more pressure to make more friendly regulations for crypto in the country. A letter sent to Russia’s finance minister by Sergey Katyrin, the head of the Chamber of Commerce and Industry of the Russian Federation (RF CCI), urged the government to recognize Bitcoin and crypto mining as a business in the country. The letter is coming after Russia has revealed plans to establish regulations for the crypto industry before the end of this year.
Russia’s Chamber of Commerce calls for crypto mining to be legally recognized as a business
Russian media outlet, TASS, reports that the Russian Chamber of Commerce has suggested that crypto mining should be given legal standing as a business in the country. The letter Sergey Katryin, the head of the non-profit that represents all businesses across the country, sent to Russia’s finance minister urged that the country’s regulations should be revised to give clarity to all matters related to digital assets, especially crypto mining.
It seems necessary to make significant revisions to current legislation and also to hammer out a range of new regulatory acts that will determine in particular the legal status of the mining as a kind of business activity, making it possible to exclude this activity from the ‘gray zone, Katyrin noted.
The letter also outlined other aspects of crypto that need regulations. These include tax and other compulsory payments on crypto, the legal status of cryptocurrencies and their use as a medium of payment, and also how the banking sector interacts with crypto and crypto investors. Katyrin advised that while Russia continues to accept only the ruble as legal tender, it was practical to study the use of crypto as a “digital expression of value.”
Crypto regulations are still a serious debate around the world
Katyrin’s letter to the finance minister is coming after it has recently been reported that the Russian government is working on a regulatory framework for crypto. The government has estimated that crypto investments by Russians are worth over $200 billion. The Kremlin also projects that it can earn about $2 billion annually in revenue from regulating the crypto industry. The President of Russia also affirmed that the country has an advantage in Bitcoin mining.
The growth of the crypto industry has incentivized many countries to give crypto regulations serious thought. Across the world, crypto regulations are taking shape in various forms, especially relating to taxation. The IRS, the US’s taxation body, has elevated hopes for clarity by saying that it may not tax rewards earned from staking in proof-of-stake protocols until the tokens are sold. This week, the government of India equally revealed plans to tax crypto gains.