Russia’s Crypto Mining Industry Gains Momentum as Government and Industry Leaders Meet
The Russian government is moving closer to regulating the country’s crypto mining industry. On October 14, 70% of Russia’s crypto mining farms attended the first forum of the Industrial Mining Association (IMA) in Moscow.
The event focused on taxation, legal aspects of mining, and the impact of cryptocurrencies on cross-border business transactions. The Russian Federal Tax Service (FTS) proposed a two-tier tax system for crypto-mining companies. Miners would be expected to make a deposit when cryptocurrency enters their wallets, and another tax payment or deduction would be calculated based on the price at which the mined coins are sold or transferred from the wallet.
However, no final decision has been made on the taxation system. Another key area of discussion was the possibility of using mined cryptocurrencies for cross-border payments, especially under Russia’s Experimental Legal Regime (ELR). The Bank of Russia is developing the necessary infrastructure for implementing cross-border operations with digital currencies.
However, there were differing opinions on this matter, with some arguing that domestic production may not be adequate for export purposes and others suggesting the use of other financial digital assets designed for the international market. The FTS also suggested creating a national register of crypto miners, requiring miners and other companies engaging in the cryptocurrency mining business to provide information such as the location of their data centers, power consumption, and origin of the mining rigs used.
They would also be required to report their cryptocurrency output and electricity usage. The consensus among forum participants was that crypto mining in Russia has a bright future, especially as the government continues to develop comprehensive regulations. Igor Runets, CEO of BitRiver, stated that the industry will generate new opportunities in the next 1-2 years as required facilities for energy-consuming computing like artificial intelligence are set up.
Timofey Semenov, CEO of Intelion Data Systems, noted that legal certainty and transparency will open up new capital opportunities for large companies, which is crucial for the further development of Russian crypto mining.
