Russia's central bank said it would allow digital currency mining in the country after several considerations, including taxes, regulation and reporting. However, the central bank has advised miners to sell their digital currency overseas, and paying taxes is essential.
Russia's central bank officially allows mining.
Russia's central bank has said it will allow the production of digital money in Russia, but they have advised miners to sell digital money overseas.
Recently, several bankers attended the annual meeting of the central bank of Russia, during which Olga Skorobogatova, the first deputy chairman of the central bank, explained:
"We allow mining in the Russian federation. For us, mining is an activity that can be supported by the central bank... At the same time, how miners trade the digital money they have dug is still a question. The central bank's view is that they must conduct digital currency transactions outside Russia.
Olga scrobogaova said the central bank's position to allow the digital currency to be mine was "from a tax, regulatory and reporting perspective".
But it is interesting to note that Russia last week, the Treasury has just submitted a draft law related to the "digital financial assets", which allows Russian citizens in regulatory approval of the exchange, agents and dealers to buy, or sell digital currency.
Miners will still be taxed.
Roman Buzko, a partner at the law firm Buzko & Partners in Russia, said miners would not get tax breaks even if they sold digital currencies overseas. He explained:
"Even if miners sell digital currency outside Russia, they still earn their money from digital currency sales. If the miners' registered companies are in Russia, they need to convert their foreign exchange earnings into roubles. For example, in oil and overseas sales transactions, income is taxable. So from a tax point of view, Russia is not going to lose. In my opinion, the Russian central bank for the overall strategy of digital currency, mainly in order to protect consumers, when they are not familiar with the field of investment in some yourself, to avoid the risk of losses.
Russia, however, communications and mass media department has already submitted to the state duma a bill, hope that through an exclusive system to detect the miners, then to provide power for their quotas, the tariffs, special favorable measures such as tax and 2 years.
Is that good news?
If you like, please follow me.
thank you