Daniel Egorovdirector of the Federal Tax Service of Russia, he said have received around 150 requests from Bitcoin miners wanting to operate in the country. Russia legalized mining earlier this month, the date it started receiving these orders.
Before that, the The Central Bank of Russia has recommended that local companies use cryptocurrencies to avoid sanctions imposed by the US and European Union countries.
As far as mining is concerned, the President Vladimir Putin said he was concerned about this industry. This is because the high energy consumption can cause power outages in certain regions. This explains the reason for the arrangement.
Miners go to Russia
Daniil Egorov told local media that regulation of Bitcoin miners has come to an end “very, very carefully, slowly, step by step” due to the complexity of the sector.
The RBC newspaper also highlights that both companies and individuals can now legally mine cryptocurrencies in the country. The Federal Tax Administration, commanded by Egorov, will be responsible for overseeing the sector.
In total cAbout 150 companies have already registered with the Russian tax authorities.
Individuals do not have to go through this bureaucracy as long as their activities do not exceed the limit of 6,000 kWh/month, which corresponds to the consumption of 37 households. This is enough to house 2 to 3 high-end Bitcoin ASICs.
Egorov expects more companies to register in the coming weeks.
“Everything happens very calmly and quietly. For me this is even positive. It is a complex issue, with different aspects. We have the register of data processing centers and the register of the miners themselves.”
“There are also issues involving the Ministry of Energy regarding energy management”continued Egorov. “It is a special situation that we have to learn to deal with: where mining is allowed, where it is not and where the electrical system is overloaded. In some regions, miners use gas to generate electricity; they plug in and produce electricity directly from the gas.”
Another point noted by the Director of the Russian Federal Tax Service was the issue of taxation, which differs between individuals and legal entities.
Finally, it is worth noting that the Russia is even studying the creation of state-owned cryptocurrency exchanges. The country’s interest in the industry is linked to the sanctions imposed on the country due to the invasion of Ukraine. Apart from that, Russia fears that stablecoins will enter local trading, and that is the reason they were forbidden.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
