Anatoly Aksakov: Cryptocurrency mining and regulation should be legalized simultaneously

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The Chairman of the State Duma Committee on Financial Markets called for bringing both markets into the legal field at the same time, since the existence of blockchains is impossible without a mining system.

Anatoly Aksakov said that legislation on the regulation of cryptocurrencies should be developed in parallel with the regulations for the mining of digital assets:

"It seems that the issues of legalization of mining should be resolved simultaneously with the legalization of the circulation of cryptocurrencies, since the existence of a distributed ledger is impossible without a mining system."

Aksakov assured that the Ministry of Finance of the Russian Federation has done a great job of preparing the legislative framework in the field of rules for regulating the mining of cryptocurrencies:  

“It seems reasonable to apply tominers - individuals - general electricity tariffs, since it does not entail the negative consequences inherent in the introduction of preferential or increased tariffs. At the same time, the optimal proposal, it seems, is not to establish any unified quotas for mining at the federal level, but to provide the corresponding rights to regional authorities, who are better informed than central authorities about the situation with electricity consumption in a particular territory.”

Head of the State Duma Committee on Financial Marketcalled for support for the approach proposed by the Ministry of Finance to qualify miners as entrepreneurs in case of exceeding the established energy consumption limit.

“In addition, it seems promisingproposals of the Ministry of Finance on taxation of mining. In terms of taxation of profits/income of legal entities, tax consequences are envisaged starting from the stage of receiving cryptocurrency as a result of mining, and for individuals - only at the stage of disposal of the received cryptocurrency. At the same time, it is expected that VAT will not be introduced in relation to mining.”

Aksakov recently announced that the bill on the extraction of digital assets, approved by regulators, will soon be submitted to the State Duma of the Russian Federation.