The Ministry of Energy in Russia is urging lawmakers to recognize cryptocurrency miners as energy users and establish regulations. Reports suggest that the next phase could involve implementing taxes specifically for mining activities. Deputy head Pavel Snikkars emphasized the importance of lawmakers advancing related bills, as the ministry supports the legalization of industrial crypto mining.
Pavel Snikkars, emphasized the need for defining cryptocurrency miners as a distinct consumer category. He also expressed the ministry’s hope for the introduction of taxation specifically for this consumer category, stating that regulatory measures would need to be implemented to address their unique characteristics.
With a notable increase in crypto mining activity, Russia is facing heightened pressure on its energy resources. Recent reports reveal that Russia has become the world’s second-largest Bitcoin miner, trailing only the United States. The country’s mining power output reached an impressive 1 gigaton during the first quarter of 2023.
The Russian Ministry of Finance foresees potential tax revenues of over $200 million per year for the government through cryptocurrency mining. Ivan Chebeskov, the head of financial policy at the department, estimated that mining could generate approximately $1.1 billion in revenue. The official highlighted that a market rate of 20% has the potential to yield substantial tax contributions.
Despite the mining sector in Russia lacking recognition as a legitimate industry and the recent abandonment of plans for a national cryptocurrency exchange, Moscow is swiftly taking steps to regulate mining as part of its efforts to reduce reliance on the US dollar. However, President Putin emphasized that Russia currently has no plans for de-dollarization, contrary to concerns raised.
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, anticipates that cryptocurrency mining could be legalized in Russia by 2024. Speaking at the St. Petersburg International Economic Forum, Aksakov highlighted the economic benefits associated with mining and expressed his support for its legalization.