No Tax Amnesty For Russian Crypto Miners As Lawmakers Withdraw Proposal – Bitcoin Mining News

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A new bill has replaced an earlier law that introduced a one-year tax and customs amnesty for cryptocurrency miners in Russia. The original proposal was withdrawn because the tax benefit would have led to losses for the state budget.

Revised crypto mining law submitted to Russian parliament without amnesty for miners

Russian lawmakers have again submitted legislation to the State Duma to regulate cryptocurrency mining. The new draft replaces a bill submitted at the end of April, which has now been withdrawn.

The revised version is missing some provisions that would have reduced the tax burden on miners at the expense of the federal budget, deputies noted. On the plus side for those extracting digital currencies, under the new rules, mining operators will not be required to monitor their clients’ money sources.

The previous draft law provided for the creation of a special registry for entities involved in crypto mining and their temporary exemption from taxes and customs duties. Over a one-year period, miners would not be required to clear customs for hardware imported prior to law enforcement, or file tax returns for crypto mining revenues.

The legislation would also relieve them of the obligation to pay value-added tax (VAT) on transactions related to the mining of digital currencies made before the law came into effect. These benefits are now gone, but the rest of the design is similar to the original bill, crypto news outlets Forklog and RBC Crypto reported.

There is a general consensus among officials in Moscow that cryptocurrency mining, in which Russia is one of the world leaders, should be recognized as a business activity and regulated. The latest draft law defines the process as issuing or generating digital currency in the Russian Federation, using its information infrastructure and equipment operating in the country.

The Russian authorities are also working to establish a comprehensive legal framework for cryptocurrencies. In February, the Ministry of Finance introduced a new bill ‘On digital currencies’. Its main aim is to fill the regulatory gaps that remain after the passing of the “On Digital Financial Assets” law, which came into effect in January last year.

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Do you think Russia will pass its crypto mining law this year? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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