Time to ‘Resolve All Crypto Issues’ Says Russian Parliament

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Russia’s parliament, the State Duma, has said it wants to “solve all legal problems with cryptocurrencies”, defining legal terms for crypto assets, mining and more. And the main architect of cryptocurrency-related legislation in the country has signaled that it is time for miners to start paying taxes on their profits.

According to the Parliamentary Gazette, legal clarity in terminology will be a priority for the Duma, which wants cyber businesses to be more transparent and predictable while “boosting the state’s revenue base” in the form of taxes.

As reported, the deputy chairman of the State Duma, Russia’s parliament, Alexey Gordeyev, has been appointed as head of a working group tasked with preparing proposals “on the legislative regulation of the circulation of cryptocurrencies. in Russia”.

In addition to parliamentarians, the group also includes industry figures, regulators, members of the government and representatives of the central bank.

As has been the case across much of the wider CIS area for much of the winter period, cryptocurrency mining has become an increasingly contentious topic in Russia. Mining is neither legal nor illegal in Russia and operates in what most analysts (and the government) call a legal “gray area”.

Russia’s provinces have complained that miners consuming electricity at subsidized household prices are putting pressure on their power grids, and the state has responded by creating a solution that allows local energy providers to increase energy rates to certain groups or individuals, that is, those who identify themselves as crypto miners.

The country’s industrial miners have also called on the government to legalize the industry, saying they are willing to pay taxes on their income if it means they will eventually be recognized as bona fide businesses.

The vice president affirmed that the group “first needs to work on the conceptual apparatus” and has created an “expert council” that will work on creating it. The group will meet again in February.

Meanwhile, Anatoly Aksakov, the head of the Duma Financial Markets Committee and the man charged with negotiating the deal and formulating the cryptocurrency legislation, was quoted as saying:

“Mining generally creates problems. I have had appeals from [local government authorities] in Irkutsk. They complain that the miners pay for the electricity they use in the same way as ordinary citizens, although they are engaged in business activity ”.

He also stated that “taxation has not yet been defined” for the sector, something that must be addressed with a legal change.

He warned that although cryptocurrencies had presented a number of new opportunities, they had also found a niche in the world of drug trafficking, terrorist operations and corruption.

Aksakov said he believed the Russians had invested a cumulative total of about $ 65.5 billion in what he called the “unregulated” crypto market.
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Learn more:
– Participation of illicit activity in cryptocurrencies is reduced, there remains a ‘significant problem’
– Russian Provinces Free to Make Crypto Miners Pay Higher Electricity Rates, Government Says

– No progress on Russian crypto law until February 2022 at the earliest, says Duma head
– 2022 Crypto Regulation Trends: Focus on DeFi, Stablecoins, NFT and More

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