Russia Set to Recognize Bitcoin Mining as Economic Activity

According to Osman Kabaloev, the Deputy Director of the Financial Policy Department at Russia’s Ministry of Finance, the recognition of Bitcoin mining as an official economic activity is set to happen soon. Following the approval of a law regulating cryptocurrency mining, this activity would be assigned an OKVED code, which classifies company activities for licensing purposes.

Russia to Recognize Bitcoin Mining With Economic Activity Code

According to local sources, the Russian government is set to recognize bitcoin mining as an economic activity soon. Osman Kabaloev, deputy director at the Ministry of Finance’s financial policy department of Russia, stated that the ministry supported this decision and was prepared to assign an OKVED code to the mining activity.

An OKVED code is assigned to companies depending on their specific economic activities and helps businesses get licenses from the state pertinent to that activity if required. In the same way, several parameters change depending on this classification, including insurance premiums, tax specifications, and receiving state benefits where available.

This recognition would help miners get out of the gray zone in Russia. Nonetheless, Kabaloev clarified that this codification would only be possible after passing a law regulating cryptocurrency mining activities. “As far as we know, colleagues from the Ministry of Economic Development are already looking into this issue,” he added.

A bill encompassing the legalization of cryptocurrency mining was introduced to the Russian State Duma in 2022 and has not passed its first discussion. However, the Ministry of Finance expects this regulation to be finalized and approved this year, leading to the issuance of cryptocurrency mining-specific OKVED codes.

Alexander Razuvaev, a member of the supervisory board of the Guild of Financial Analysts and Risk Managers, explained that these measures can be very positive for the development of the Russian crypto-mining industry. “If this happens, then Russian industrial mining can play a significant role in the global market,” he concluded.

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