Russian Government plans to deem crypto mining as an entrepreneurial activity

Russian Government plans to deem crypto mining as an entrepreneurial activity

The Chairman of Russia’s Duma Financial Market Committee, Anatoly Aksakov announced that the government plans to deem the pursuit of digital currency under the entrepreneurial activities category. On the side-lines of the Moscow Financial Forum, Aksakov highlighted upcoming changes in virtual currency regulations including issues related to mining, and the emission caused by the business of digital currency.

Furthermore, upon registering all cryptocurrency processes as entrepreneurial activities, it will also be liable to the state’s taxation policies.

“Since this is a type of entrepreneurial activity, obviously, it is necessary to enter it into the register, assign a code to it corresponding to it as a type of entrepreneurial activity and introduce taxation,”, Aksakov told the Russian publication, TASS.

Russia aims to educate through regulatory policies

Duma Financial Market Committee’s Chairman emphasized the importance of educating the citizens on the digital currency market’s terminologies. He stated that these regulations will draw a clear line between the Digital Currency of the Central Bank and the decentralized system’s virtual currencies.

Aksakov asserts that digital currency is not merely a payment method, in fact, it is a financial entity, used as a device for investment. He contends the importance of framing a structure for digital currency distinctions and their respective values.

“There is a digital currency of the Central Bank and there is a digital currency, which, in fact, is probably understood as a cryptocurrency, and it is necessary to clearly define the delimitation of these concepts so that there is no confusion…We still need to discuss the fact that digital currency is actually now, although we call it currency, it is rather used as a financial instrument, as a financial asset, which is an object for investment, rather than as a means of payment,”, Aksakov added.

Crypto crackdown in Russia

Crypto regulations are not Russia’s first move towards clamping down the democratic nature of digital currencies. Last month, Russia’s Federal Financial Monitoring Service in Moscow, named Rosfinmonitoring, commissioned the latest tracing system to track cryptocurrencies. This system was aimed towards analyzing the behaviors and movements of traders to deanonymize their identities.