The proposal aims to treat crypto mining as a commercial activity and impose taxes on realized profits
The Russian government continues to work on regulation for digital assets. One of the ministries has presented another proposal for the crypto mining industry.
Russia's Ministry of Economic Development has given the green light to regulate crypto mining in the country and is proposing to allow mining operations in regions with "sustainable surplus in electricity generation," local Izvestia news agency reported on Tuesday .
In this proposal, the ministry suggested introducing lower fees for setting up mining farms and data centers in certain regions of Russia and offering discounted electricity prices for such facilities.
The ministry also wants to set a cap on electricity consumption in mining for individuals and has proposed introducing higher electricity prices for increased electricity consumption. The agency has yet to set a threshold for this, the report says.
According to the ministry, these proposed rules would eliminate the risk of insufficient electricity supply for housing, social facilities and infrastructure in other regions of the country.
Also, the ministry has proposed classifying crypto mining as a commercial activity and imposing taxes on profits made from cryptocurrency mining.
Cointelegraph reached out to the ministry for comment but had not received a response as of press time. This article will be updated as new information becomes available.
Currently, there is still uncertainty related to the regulation of cryptocurrencies in Russia. Various parts of the government are still arguing about how Bitcoin ( BTC ) should be regulated.
As previously reported, the Russian Ministry of Finance has pushed for regulation of the crypto industry , while the Bank of Russia is pushing for a ban on crypto transactions, citing they pose risks for investors. When the government officially approved the concept of crypto regulation on Feb. 8, Bank of Russia Governor Elvira Nabiullina subsequently stated that the bank did not support the government's decision and would continue to oppose cryptocurrencies in Russia .
The government and central bank are expected to present a joint draft law regulating cryptocurrencies by Friday.
Some large state-backed financial institutions in Russia have recently come out in favor of regulating cryptocurrencies in the country. Anatoly Popov, deputy chief executive of Russian banking giant Sber, has said he favors regulating the industry rather than banning it.
"Our stance is in line with the government's stance that cryptocurrencies should be regulated, not banned. There needs to be effective regulation that allows citizens and organizations to legally purchase cryptocurrencies. At the same time, anti-money laundering mechanisms and taxes should be taken into account," he said explained.
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