The Russian Ministry of Economic Development (RECD) has announced an intention to drastically reduce taxes on Bitcoin mining activities in the country.
According to local news source Izvestia, the Kremlin government plans to encourage more mining investment within the region by mapping out strategic areas with surplus electricity reserved for crypto miners.
The new development is seen as one of the ways for President Vladimir Putin to position the country in order to greatly benefit from the fast-growing crypto industry.
Despite much good news coming from Russia for the crypto industry, the country’s central bank still continues to suggest a blanket ban on cryptocurrency activities.
Earlier this week, Elvira Nabiullina, the governor of the country’s Apex bank said the bank will not spare any effort to convince the government of the necessity of banning crypto. He added that the bank will go into more detail and make the government see significant risks in cryptocurrency.
Russia Moves to Recognize Crypto as a Form of Money
Despite Russia’s central bank’s proposal for an outright ban of crypto-related activities in the country, the government of Russia sees a benefit that can be leveraged in the nascent form of money.
As reported by TimesTabloid a couple of days ago, Authorities in Russia are set to recognize crypto assets as a form of money.
According to the report, the government of Russia and the Apex bank have reached a consensus on how to regulate crypto space in the country.
The report says, “The government and the Bank of Russia have agreed on a future regime for the circulation of cryptocurrencies in Russia: before February 18, they will prepare a draft law on the circulation of digital currencies in the Russian Federation, in which cryptocurrencies are recognized as an analogue of currencies, and not digital financial assets…”
A draft law, which will be made public by 18th February, is currently in process. The law is targeted at defining crypto as an analog form of currency rather than as a digital financial asset.
According to the report, it will only be possible to use digital currency in the legal sector with full identification, via the banking system or authorized intermediaries.