Fun

Russian Nationalists Prepare Bill to Regulate Cryptocurrency Mining

News Feed - 2021-11-13 10:11:23

Russian Nationalists Prepare Bill to Regulate Cryptocurrency Mining


Lawmakers from the Liberal Democratic Party of Russia are gearing up to introduce a draft law designed to regulate crypto mining. The nationalists say the legislation will benefit both Russian citizens and the state, as well as those who want to get involved in the business legally. Nationalists Propose Regulations for Russian Crypto Miners


The popularity of cryptocurrencies, rising with their market value, has drawn the attention of the nationalist faction in the State Duma, the lower house of Russian parliament. “Unsecured” bitcoin is now trading at $68,000 per coin, one of its members, Andrey Lugovoy, noted in comments to local media this week, adding: If three years ago someone invested 1 million rubles, they would now have 5 billion.


The deputy revealed that his Liberal Democratic Party of Russia (LDPR) is going to file a draft law on the regulation of cryptocurrency mining. Digital coin minting has also expanded in the vast and energy-rich country where it still develops in the absence of comprehensive government rules for the sector.


The profitability of mining has enticed many companies and ordinary Russians to join the industry. Lugovoy believes it’s time to regulate crypto mining through the adoption of new legislation. Quoted by the Regnum news agency, the lawmaker stated: We cannot rush left and right. We should either strictly prohibit it, adjusting the law enforcement system [accordingly], although I don’t really understand how this could be done, given that this is a virtual reality, as they say. Or, let’s permit it.


The nationalist insists that the latter solution will provide protection for Russian citizens, simplify taxation, ensure transparency, and allow the state to exert control over the sector while increasing budget receipts. At the same time, entrepreneurs will get an opportunity to conduct business legally, the parliamentarian elaborated.


Andrey Lugovoy also remarked that the implementation of regulatory norms is especially relevant for regions with abundant energy resources such as Irkutsk Oblast, which maintains low electricity rates. The cheap energy available there and in other parts of the country attracts many cryptocurrency miners, the lawmaker pointed out. Andrey Lugovoy


Cryptocurrencies have been only partially regulated in the Russian Federation with the law “On Digital Financial Assets” which went into force in January. While it introduces rules for related activities such as “digital currency issuance,” it does not explicitly mention cryptocurrency mining.


The idea of recognizing mining as an entrepreneurial activity has been gaining support in government circles and officials in Moscow say the move would allow authorities to properly tax miners’ profits. In September, this approach was backed by the chairman of the important Financial Market Committee at the Duma, Anatoly Aksakov, who revealed that mining is likely to be affected by a number of upcoming legal amendments during the fall session.


Do you think the State Duma will adopt the crypto mining legislation proposed by Russian nationalists? Tell us in the comments section below. Bitcoin’s Hashrate Soars 42% Higher Over the Last 3 Months Following Crypto Asset’s 36% Price Increase MINING | 17 hours ago Meet the Antminer S19 XP — Bitmain Reveals ASIC Manufacturer"s Most Powerful Bitcoin Miner MINING | 1 day ago Tags in this story Andrey Lugovoy, bill, Bitcoin, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deputy, draft law, Duma, House, Law, lawmaker, lawmakers, LDPR, mining, nationalists, parliament, party, Regulation, Regulations, rules, Russia, russian, State Duma


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Digital Yuan to Fuel China’s Economic Reign – McDonald’s, Starbucks, Subway Test PBoC’s Cryptocurrency
Digital Yuan to Fuel China’s Economic Reign - McDonald’s, Starbucks, Subway Test PBoC’s Cryptocurrency China’s economy is the second-largest in the world and economists
Strategy and Space Gamers Get Their Own Play-to-Earn Metaverse Full of Cool NFTs — DEEPSPACE (DPS) Alpha Review
Strategy and Space Gamers Get Their Own Play-to-Earn Metaverse Full of Cool NFTs — DEEPSPACE (DPS) Alpha Review Space, the final frontier. The long and exciting journey through v
Tiago Serôdio11 hours agoMultiparty computation (MPC): Its effects on blockchain innovationStaying ahead isn"t just about embracing current trends; it"s about discerning where the next wave of innovation lies.487 Total
Ana Paula Pereira7 hours agoYearn.Finance token tumbles 43%, community speculates on exit scamYearn.Finance"s YFI token crashed over 43% in just five hours, after rallying almost 170% in November.4037 Total views23 Total
Savannah Fortis12 hours agoWho is Emmett Shear, OpenAI’s new CEO?Three days after OpenAI abruptly fired its longtime CEO, Sam Altman, it announced its new CEO, Emmett Shear, who co-founded the video streaming platform
Brayden Lindrea4 hours agoEthereum, Bitcoin users reignite scalability debate as gas fees surgeEthereum gas fees reportedly breached the $200-mark for certain high-priority transactions in the last 24 hours.3842 Total vi
Analyst tips Solana ETF deadline for mid-March after new filings
Tom Mitchelhill7 hours agoAnalyst tips Solana ETF deadline for mid-March after new filingsBloomberg ETF analyst Eric Balchunas maintains that the outcome will likely be decided by whether Donald Trump is elected presiden
California county to regulate Bitcoin ATMs backed by state laws
Arijit Sarkar25 minutes agoCalifornia county to regulate Bitcoin ATMs backed by state lawsChico, California, looks to state and local regulations to oversee Bitcoin ATMs, aiming to limit fraud and ensure transparency.186
William Suberg8 hours agoBitcoin price faces 200-week trendline as US dollar hits 6-month highBTC price centers on the 200-week exponential moving average, while analysts warn that Bitcoin and risk assets are in danger f
Kamala Harris could be ‘far more open’ to crypto business, Mark Cuban says
Ana Paula Pereira3 hours agoKamala Harris could be ‘far more open’ to crypto business, Mark Cuban saysKamala Harris’ campaign team is reportedly seeking input on crypto policy ahead of the Democratic National Conve
Moscow, Karelia, Irkutsk — Study Lists Most Popular Crypto Mining Destinations in Russia
Moscow, Karelia, Irkutsk — Study Lists Most Popular Crypto Mining Destinations in Russia Russia could be a large player in the crypto mining space, experts in the field have esta
Hacker Siphons Close to $300K in OHM Tokens From the Olympus DAO
Hacker Siphons Close to $300K in OHM Tokens From the Olympus DAO On Friday, October 21, a malicious entity siphoned 30,437 OHM tokens from the Olympus DAO after finding a loophole