Russia is taking decisive action to establish regulatory frameworks for its cryptocurrency mining sector. Recently, government officials and industry representatives gathered at the first Industrial Mining Association (IMA) forum in Moscow to address critical issues impacting the industry.

Cryptocurrency Mining Tax System

On October 14, the forum attracted around 70% of the nation’s cryptocurrency mining operations. The main focus was on taxation, legal frameworks surrounding mining, and how cryptocurrencies influence international trade. A proposed two-tier taxation model from the Federal Tax Service (FTS) was a significant discussion point. This model suggests that miners would make an initial deposit after receiving cryptocurrencies in their wallets, followed by an additional tax upon selling their assets.

Cross-Border Payments Management

Another major topic was the potential use of Russian cryptocurrency mining for international payments under the Experimental Legal Regulation (ELR). The Central Bank of Russia is actively working on infrastructure to facilitate these cross-border transactions. Differing views emerged, with some attendees questioning whether domestic mining could meet export demands, while others proposed using alternative financial digital assets created for international markets.

Future of Cryptocurrency Mining in Russia

To boost transparency, the FTS suggested the establishment of a national registry for cryptocurrency mining operations. This registry will require mining companies to disclose information about their facilities, energy use, and equipment sources. The registry aims to enhance compliance and oversight. Confidentiality will be maintained for much of the reported information. The focus on transparency is intended to foster trust within the market.

Experts believe that with the development of regulations and infrastructure, the Russian cryptocurrency mining sector has a promising future.