Russia, which has become a popular crypto mining hub after a number of Asian regions banned the practice as of recent, is proposing to officially recognize virtual currency miners as businesses and impose a tax on their activities.
The world’s largest cryptocurrency started the week off with strong gains, rising above $66,500 before surpassing its all-time record-high of $66,970 witnessed last month as it topped $69,000. Likewise, ether also enjoyed significant gains on Monday, setting a new record of $4,740, marking a gain of nearly 60% since the beginning of October.
The recent rally across crypto markets is being fuelled by prominent interest among investors, particularly after the US launched the first bitcoin ETF. However, the gain have also caught the attention of the Russian government, which is looking to capitalize on the positive momentum in virtual currencies.
According to Russian Izvestia newspaper, government officials from both the Economic Development Ministry and Economic Ministry said that crypto mining falls under the definition of business activity, and should be regulated as such. The latest initiative is currently in the discussion phase with business representatives in the crypto industry, and if materialized, would allow authorities to collect taxes from mining activities in the country.
Deputy director of the Digital Economy Development Department at the Economic Development Ministry Aleksey Minaev said that recognizing crypto mining as a business activity would be beneficial both to the miners and the government. “This is exactly the area in which the state can receive its benefits in the form of taxes, and people can legalize their income; big business is also becoming more and more interested in this,” he explained during the Blockchain Life 2021 forum.
Information for this briefing was found via Izvestia. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
