Russian Prime Minister Mikhail Mishustin indicated that although the government fully supports the Central Bank’s position that cryptocurrencies cannot be used as legal tender in the country, cryptocurrency mining may be investigated.
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For years, cryptocurrency legislation has been a point of contention in Russia, and digital currencies continue to be a murky area of the law. The Central Bank’s stance, advocating for a blanket prohibition on cryptocurrencies, muddled things further.
Are Cryptocurrencies Property?
In other news, Anatoly Aksakov, the chairman of the State Duma Committee on Financial Markets, said that cryptocurrencies might be recognized as property before the end of the year.
Aksakov said in an interview with the Russian publication IZ that revisions to the Tax Code are likely to be passed before the conclusion of the spring legislative session. It was previously declared by the Central Bank that it was difficult to employ cryptocurrency to bypass sanctioning regimes.
Consequently, it is projected that the shadow economy would expand as a result of cryptocurrency’s legalization, with the loss of tax revenues possibly outweighing any benefits from mining taxes and enterprises utilizing digital assets.
Moreover, the regulator emphasizes that the implementation of cryptocurrency taxes does not conflict with the intentions of the Bank of Russia.
In his opinion, the State Duma’s spring session this year will be an excellent opportunity to pass modifications to the Tax Code that would address digital currencies in particular.
People would be required to register their bitcoin transactions and the recognition of cryptocurrencies as property in this event would occur when the total turnover exceeds 600 thousand rubles per year, according to this scenario.