Moscow is on the brink of legalizing its rapidly expanding industrial crypto mining sector, following persistent lobbying efforts from major Bitcoin (BTC) miners in Russia. The finance ministry is poised to approve a draft bill that would officially recognize mining as a form of entrepreneurship, subjecting miners to taxation and potentially higher energy costs.

Regulating Crypto Mining

If passed by the State Duma, the bill would require miners to pay taxes on their earnings and potentially face increased energy expenses. Despite the lack of legal status for crypto in Russia, the proposed legislation seeks to bring mining out of the "grey" sector and into formal business activity.

Classification and Recognition

The bill aims to include "the mining of cryptoassets" in the All-Russian Classifier of Economic Activities (OKVED), a government-recognized list of business activities. The finance ministry expressed openness to granting miners OKVED recognition, with discussions ongoing about creating a new OKVED code or adding mining to an existing category.

Alignment of Ministries and Central Bank

Previously, the industry ministry suggested classifying crypto mining as a form of manufacturing-related activity. While OKVED recognition may result in higher costs for miners, it would also provide the sector with greater stability. The Central Bank, initially advocating for a blanket ban on crypto, has softened its stance in recent years. While still cautious about adoption, it is willing to allow cross-border trade firms to use cryptocurrencies under its supervision.

Future Outlook

The potential legalization of the crypto mining sector in Russia reflects a shifting regulatory landscape and growing acceptance of cryptocurrencies. However, the final decision rests with the State Duma, and further discussions are expected to determine the specifics of taxation and regulation for miners.