Russian Prime Minister Mikhail Mishustin has revealed the government completely supports the Central Bank’s view that cryptocurrencies cannot be used as legal payment in the nation, but that cryptocurrency mining may be explored.
Cryptocurrency legislation has been a hot topic in Russia for years, and digital currencies remain a murky area of the law. The Central Bank’s position, which advocated for a blanket ban on cryptocurrency, further complicated matters.
Speaking in the State Duma on Thursday, April 7, Mishutin stated:
“We are against the recognition of cryptocurrency as a means of payment or money.”
The Prime Minister added:
“We also think that in order to stimulate investment, primarily in fixed capital, we can discuss mining issues, which includes the creation of data centers and related infrastructure.”
Last month, Russian Deputy Prime Minister Alexander Novak said that legalizing cryptocurrency mining and implementing laws to make it a legitimate corporate activity in the country would be more beneficial.
Elsewhere, the head of the State Duma Committee on Financial Market, Anatoly Aksakov, revealed cryptocurrencies could be recognized as property this year.
According to Aksakov in an interview with the Russian outlet IZ, amendments to the Tax Code are expected before the end of the spring session. Earlier, the Central Bank stated that it was impossible to use cryptocurrencies to circumvent sanctions.
With the legalization of cryptocurrencies, the shadow economy is expected to grow, with the loss of tax revenues potentially outweighing any gains from mining taxes and businesses involving digital assets.
The regulator underlines that the implementation of cryptocurrency taxes is not at odds with the Bank of Russia plans.
“But it is important to understand that cryptocurrencies are actively used, among other things, to underestimate revenues and avoid taxes,” said the regulator.
According to Aksakov, amendments to the Tax Code in relation to digital currencies may be implemented at the State Duma’s spring session this year.
In this case, the recognition of cryptocurrencies as property and the need for people to declare their cryptocurrency transactions would be when the total turnover surpasses 600 thousand rubles per year.