Revised crypto mining bill in Russia removes tax amnesty for miners

Parliament's version of a crypto mining bill in Russia has dropped several crucial provisions in less than a month.
Parliament's version of a crypto mining bill in Russia has dropped several crucial provisions in less than a month.

Parliament’s version of a crypto mining bill in Russia has dropped several crucial provisions in less than a month, including the requirement for mining operators for special registration and a one-year tax remission for all those who have registered. According to the reasoning, the earlier proposal would result in federal budget losses.

The database of the Russian parliament’s lower chamber, the State Duma, has a new draft of the bill “On mining in Russian Federation,” dated May 20. The document differs significantly from the previous version, which was given by co-sponsors on April 29.

While the content is largely unchanged, the revised version excludes a sub-section addressing the registration of mining operators, which firms would be required to join in order to continue their activity. Crypto mining companies should register as sole proprietors or self-employed in the newest edition to start mining. For corporate registration, the companies would follow a regular procedure.

Russia working on clear crypto regulations

The promise of tax amnesty during the first year of registration was blown away by another important correction. The grace period would apply to the customs clearance of mining equipment, all profits made prior to the law’s adoption, and any probable breaches the government imposed in Russia on cross-border money transfers. According to local media, the Duma’s legal department opposed the registry and tax amnesty proposals in its examination of the bill, claiming that they could “possibly incur costs on the federal budget.”

As per Anatoly Aksakov, the head of the State Duma’s financial markets committee, the crypto-related amendments to the federal tax code are set to pass before the completion of the summer parliamentary session.

The Central Bank of Russia or CBR, which wants to ban crypto trading and mining, has a tough stance on crypto trading and mining. However, as TheCoinRise reported last week, the trade minister has stated that Russia will eventually legalize crypto as a means of payment.