Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, proposed adding cryptocurrency mining to the register of entrepreneurial activities. How will this affect the work of miners and can it help the development of the industry
Cryptocurrency mining must be entered into the register of business activities. This initiative was made by the chairman of the State Duma Committee on the Financial Market Anatoly Aksakov on the sidelines of the Moscow Financial Forum, writes TASS. According to Aksakov, cryptocurrency mining needs to be assigned a code as a type of entrepreneurial activity and appropriate taxation should be introduced.
Also, the State Duma deputy announced the upcoming changes in Russian legislation regarding digital assets. According to Aksakov, lawmakers plan to clearly distinguish between the terms "cryptocurrency" and "digital assets".
“There is a digital currency of the Central Bank and there is a digital currency, which, in fact, is probably understood as a cryptocurrency, and it is necessary to clearly define the delimitation of these concepts so that there is no confusion,” the parliamentarian explained.
RBC-Crypto experts explained how the inclusion of mining in the register of entrepreneurial activities will affect the industry as a whole and enterprises that are already mining cryptocurrencies.
The introduction of appropriate amendments to the legislation will affect the miners, said Efim Kazantsev, a member of the Commission on the Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association. According to him, if an organization is engaged exclusively in mining and does not conduct other business activities, then it will have to bring the information entered into the USRIP (Unified State Register of Individual Entrepreneurs), which indicates the main type of activity according to the All-Russian Classifier of Economic Activities. (OKVED).
Already now, mining can be legalized without problems by registering as an individual entrepreneur (individual entrepreneur), a self-employed or a legal entity, the lawyer explained. At the same time, as the main type of activity according to OKVED, you can specify the type with the number 72.40 "Activities for the creation and use of databases and information resources," Kazantsev added.
Inconsistency of legislation
Such initiatives can only be welcomed, since mining does not differ from any business both in terms of the level of investment at the start and in terms of the degree of entrepreneurial risk, says Dmitry Kirillov, a teacher at Moscow Digital School.
The lawyer explained that even if mining is entered into the register of entrepreneurial activities, this will not allow miners to fully dispose of the results of their work. The law "On CFA" prohibits Russian residents from accepting digital currency as a counter-provision for goods, works or services, the expert recalled.
“A Russian miner cannot buy anything from a Russian resident for the cryptocurrency he mined, he only has to buy abroad or sell cryptocurrency for ordinary, fiat, money and further settlements in the traditional format,” Kirillov added.
Such a restriction on the turnover of cryptocurrency does not contribute to business activity in the field of mining and, ideally, requires correction of the law "On CFA", the lawyer summed up.
Regulation is necessary
Adequate mining regulation will help bring the industry in Russia to a new level to compete with countries such as Kazakhstan, Canada and the United States, says BitCluster co-founder Sergei Arestov. According to him, the mining of cryptocurrency is a very capital-intensive industry, which cannot be done without loans, leasing and other financing instruments.
The inclusion of mining in the register of types of entrepreneurial activity can simplify the legalization of small mining farms, which now operate without registration, says Arestov. But a truly effective mining business can only be created on an industrial scale, added the co-founder of BitCluster.