Russia Removes Mining from Draft Legislation on its Second Reading

Russia Removes Mining from Draft Legislation on its Second Reading

On 19 October, Interfax informed the public that lawmakers took out the concept of mining from a draft bill called ‘On Digital Financial Assets’

Anatoly Aksakov, the head of the Duma on Financial Markets, explained the deputies determined the Russian economic system does not need Bitcoin, hence mining is not necessary. He adds the definition of what constitutes a cryptocurrency has to be defined first before the law can elucidate mining.

Earlier we had some thoughts on Bitcoins, on their integration into our economic system. But as we decided we don’t need them, these ambiguous Bitcoins, therefore we don’t need mining as well.

Anatoly Aksakov, the chairman of the Duma Committee on Financial Markets

On the Question of Cryptocurrency Mining and Taxes

Aksakov tells Interfax that the question of whether or not there is a need for taxes on mining falls under Russia’s tax inspectorate. He further states that mining does not seem logical in the system they have prescribed.

The First Draft

Alexei Moiseev, the Deputy Finance Minister, said on the first reading that mining is an entrepreneurial activity which uses equipment to produce cryptocurrency. Mining as an entrepreneurial activity is subject to taxation.

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