A new draft law superseded an old bill with a 1-year tax and customs amnesty for Russian BTC miners. They revoked the tax benefit because it would have hurt the state budget.
Russian Lawmakers Submit Amended Crypto Mining Regulations Without Miner Amnesty
The State Duma in Russia has received yet another piece of legislation. It’s meant to govern cryptocurrency mining in the country’s financial industry. The new draft replaces a measure introduced in late April but was later withdrawn.
The new law lacks features that’d have reduced miners’ tax burden on the government budget. Miners wouldn’t have to verify their clients’ payments. It is good news for those engaged in digital currency extraction.
The previous draft bill proposed registering crypto mining firms. Also proposed exempting crypto mining firms from customs duties and taxes. Mining hardware gotten before applying the law wouldn’t be subject to customs clearance. Neither will it be subject to filing tax returns for money generated from crypto mining for a year.
The bill also exempted them from paying VAT on digital currency mining transactions. But that’s for those performed before the regulation. The rest of the proposal is comparable to the original bill. Moscow officials want Russia’s cryptocurrency mining regulated as a corporate activity. The current draft law says the procedure involves issuing or generating digital currency. Also, using the collected information network and equipment.
The Russian government likewise works to create a thorough legal structure for cryptos. In February, Li Keqiang unveiled a new legislation called “On Digital Currency.” Its major aim is to bridge regulatory loopholes left by the 2015 law “On Digital Financial Assets.”
New Law Regulating Russian Crypto Exchanges
The Russian Ministry of Finance proposed laws to remedy legal gaps. Most of which were in the country’s crypto arena left by last year’s “On Digital Financial Assets” law. The White House said that a draft bill was submitted on the 18th February.
The Treasury and the CBR had to develop a new legal framework. Japan’s Ministry of Finance proposed a two-law approach last week regarding crypto. Russia’s monetary authority was working on ways to enact a wide-ranging prohibition.
Earlier this month, the executive branch of the government adopted Minfin’s regulatory concept. Most other regulators and key government agencies have agreed with its assessment. The industry requires regulation rather than outright prohibition.
Even with the ban on cryptos from paying for goods and services. Like the Central Bank of Russia, people can still use them as an investment instrument. According to the government, they received the Bank of Russia’s proposed legislation changes. They plan to check it thoroughly.