Updated Russian Crypto Mining Bill Reduces Tax Amnesty for Bitcoin Miners

In less than a month, the crypto mining bill in the Russian parliament lost several key points, such as the obligation for mining operato...



In less than a month, the crypto mining bill in the Russian parliament lost several key points, such as the obligation for mining operators to register in a special register and a one-year tax amnesty for all those who registered. According to the reasoning, the previous project would result in federal budget losses.

The new draft law “On Mining in the Russian Federation”, dated May 20, appeared in the database of the lower house of the Russian parliament, the State Duma. The document has several significant changes from the previous version, present by the co-sponsors on April 29.

While the text remains unchanged in general, the new draft misses the subsection on a register of mining operators, which companies should register in order to continue their work. In the latest version, to start mining, crypto mining companies must register as sole proprietor or self-employed. Companies would follow a standard procedure for company registration.

Related: Russia To Include Crypto In Its Tax Code: Here’s What The Rules Could Look Like

Another correction swept away the promise of tax amnesty in the first year of registration. The grace period would apply to the clearance of mining equipment, any profits made before the law was passed, and any violations of strict limits on money transfers abroad adopted by the Russian government on March 8. . local media, in its review of the project, the legal department of the State Duma critical registration and tax amnesty initiatives, stating that they could “eventually incur costs on the federal budget”.

On April 7, the head of the State Duma’s Financial Markets Committee, Anatoly Aksakov, revealed that changes to the federal tax code regarding crypto should be adopted. by the end of summer parliamentary session. It is unclear if they would include specifications regarding mining.