Russia is one step closer to officially recognizing Bitcoin mining as a legitimate economic activity, said Osman Kabaloev, the Deputy Director of the Financial Policy Department at Russia’s Ministry of Finance.
Once a law regulating cryptocurrency mining is approved, this activity will be assigned an OKVED code, which is used to classify company activities for licensing purposes.
Business as usual
Local sources reveal that the Russian government is preparing to define Bitcoin mining as a common economic activity.
Osman Kabaloev shared in an interview with the local newspaper Izvestia that the Ministry of Finance, supported by Minek, is ready to assign an OKVED code to Bitcoin mining, and the Ministry of Trade and Development, Minpromtorg, also supports regulating Bitcoin mining as a standard industrial activity.
The OKVED code is needed for businesses as it categorizes economic activities, helping companies obtain necessary state licenses, and this classification impacts various parameters like insurance premiums, tax codes, and even eligibility for state benefits.
Recognizing Bitcoin mining would help miners move out of the so called gray zone in Russia.
Kabaloev mentioned that this codification would follow the passage of a law regulating cryptocurrency mining activities, and he noted that colleagues from the Ministry of Economic Development are already working on this issue.
Labyrinth of the bureaucracy
A bill to legalize cryptocurrency mining was introduced to the Russian State Duma in 2022 but has yet to pass its first discussion.
Now the Ministry of Finance anticipates that this regulation will be finalized and approved this year, leading to the issuance of specific OKVED codes for cryptocurrency mining.
Alexander Razuvaev, a member of the supervisory board of the Guild of Financial Analysts and Risk Managers, believes these measures could significantly benefit the Russian crypto-mining industry, and he stated that if this happens, Russian industrial mining could play a much bigger role in the global market than today.
Optimal for Bitcoin mining
Russia has vast amounts of cheap energy, positioning it to potentially become one of the largest hosts for Bitcoin mining, and many expert thinks this development could reshape the industry in big way.
There is also a speculation in the Bitcoin community that if mining becomes a lawful activity, wider Bitcoin adoption in the country might follow.
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