Russia’s cryptocurrency mining industry has made significant contributions to the national economy, with miners producing around 54,000 Bitcoins worth over $3 billion in 2023.
Significance of the Industry
According to Sergey Bezdelov, head of the Russian Industrial Mining Association, this activity generated about 50 billion rubles ($556 million) in tax revenues for the Russian government. Bezdelov shared this information at the Industrial Mining session of the Eastern Economic Forum (EEF-2024) on September 4.
Regulatory Changes
Bezdelov underlined that significant tax revenues are generated under the current regulatory framework, describing it as 'sensitive' and predicted that the sector's contribution could increase as new infrastructure investors enter the market. He noted that this increase in investments would likely lead to an increase in tax revenues.
Eastern Economic Forum
The announcement comes on the heels of a major legal development in Russia. On August 8, Russian President Vladimir Putin signed a law that will legalize cryptocurrency mining in the country starting in November. Under the new law, Russian legal entities and individual entrepreneurs registered with the Ministry of Digital Development will be allowed to mine cryptocurrencies. Additionally, individuals without individual entrepreneurship status will be allowed to mine, provided they comply with government energy consumption limits.
This legal framework is expected to attract more investment into Russia’s cryptocurrency mining sector and further increase the country’s tax revenues. The new law also allows mining infrastructure operators to operate, which must be registered with the Ministry of Digital Development. The Eastern Economic Forum (EEF-2024) addressing these developments was held in Vladivostok from September 3-6.
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