A working group will soon begin to meet at the lower house of the Russian parliament known as the State Duma and it is based on cryptocurrencies and other related activities. The members of the working group will be expected to handle the task of clarifying the different regulatory aspects relevant to digital financial assets, such as the introduction of taxation and the legalization of mining. This working group is being established by the Russian State Duma that will comprise of deputies for addressing all the outstanding questions that exist in relation to the regulation of these decentralized virtual currencies.
According to Anatoly Aksakov, the head of the parliamentary Financial Market Committee, the first meetings of the group are scheduled to be held in the near future. The establishment of this working group was proposed on November 11th by Vyacheslav Volodin, the Duma Speaker. Aksakov had a very positive response regarding this move and disclosed that the house was now gathering the members of the group. According to the high-ranking lawmaker, there are a number of ‘grey areas’ associated with taxation, circulation, issuance and operations of cryptocurrencies that need to be addressed. He said that it was necessary to discuss, analyze and regulate them normatively and legislatively.
Therefore, he added that in his opinion, creating the working group was the right move. He added that he would also be participating in the working in the group and hoped that they would be able to find the right solutions. Up till now, cryptocurrencies have only been partly regulated in the Russian Federation, along with any activities related to these digital assets. They have introduced the regulation titled ‘On Digital Financial Assets’ that was put into effect from January of this year. There are a number of questions that still remain unanswered, such as whether cryptocurrencies can be used for payments or not.
There has also been consistent opposition from the Bank of Russia regarding acceptance of Bitcoin as legal tender. It recently proposed that legal liability be introduced for some operations with digital assets that are considered illegal in the country, which prominently includes the use of crypto as money surrogates. Another area that requires attention is crypto mining. With its cheap and abundant energy, it is not surprising that Russia has become one of the top destinations of crypto miners, but the sector remains unregulated by the government.
There is an increasing number of Moscow officials who believe that crypto mining should be declared as an entrepreneurial activity and taxes should be imposed activity. Anatoly Aksakov mentioned in September that he shared the same opinion. Reports indicate that most of the crypto miners who moved out of China after the ban imposed on crypto mining have chosen Russia as their destination. This makes it even more important for the country to take action and regulate crypto mining because the market is going to expand rapidly. Statistics also show that crypto adoption is already very high in the country and is likely to increase.