According to a Russian local news report, Russia has emerged as a significant player in the global cryptocurrency mining industry, with 54,000 bitcoins mined in 2023.
This surge in bitcoin production has generated approximately 50 billion rubles in taxes for the state treasury. Sergey Bezdelov, director of the Industrial Mining Association, announced the figures during the Industrial Mining session at the Eastern Economic Forum (EEF-2024) on Wednesday, September 4.
Russia Adds 50 Billion Rubles To State Revenue
The industrial mining activities throughout Russia are the reason behind the large-scale bitcoin mining. Bezdelov emphasised that when new rules are put forth to improve the climate for investors, it is anticipated that this increase in tax revenue will continue.
Bezdelov said, “There is now a law on the correct ‘gentle’ regulation.” He went on to say that the country’s tax payments are anticipated to increase even more as a result of the flood of new investors.
Russia’s laws governing cryptocurrency mining are changing. Vladimir Putin, the president of Russia, signed a bill on August 8th, 2023, making the mining of cryptocurrencies legal starting in November.
According to this regulation, Russian legal firms and individual entrepreneurs registered with the Ministry of Digital Development will be permitted to conduct mining operations.Â
Furthermore, mining will be allowed for those without enterprise status as long as they stay below the government-established energy consumption limits. The registry for operators in charge of mining infrastructure will also be supervised by the Ministry of Digital Development.
The regulation signifies a substantial change in Russia’s stance on cryptocurrencies. It is anticipated to provide legal certainty and draw in additional infrastructural investment, strengthening the nation’s mining sector even more. It is anticipated that greater investments will result in a rise in tax income overall, which will strengthen the national economy.
Russia to Start Experimenting with Cross-Border Crypto Payments
In the meantime, Russia is getting ready to test out cryptocurrency exchanges to make cross-border transactions easier, particularly in light of sanctions spearheaded by the United States that have limited Russia’s access to international financial systems. Forbes reported.
The National Payment Card System of the nation will be used to handle payments for the trials, which are anticipated to start on September 1. The portal will be used to swap cryptocurrencies and rubles throughout the trial period.
It is anticipated that the trials will provide relief to Russian companies who have been struggling with payment problems as a result of Western sanctions.
In 2022, Russia lost access to the worldwide Swift banking system and was cut off from the dollar-based financial system in the United States. Due to the restrictions on cross-border trade, Russia has been forced to look into cryptocurrency and other options to maintain its economic functioning.
This move by Russia underscores its growing reliance on Bitcoin and other cryptocurrencies to navigate the complex global economic landscape.
As the country pushes forward with regulatory advancements, the ripple effect on its mining industry and cross-border trade could potentially reshape Russia’s financial interactions with the rest of the world.
Putin Passes Bill To Legalize BTC Mining & Trading In Russia
Russia To Set Up Two Cryptocurrency Exchanges To Support Foreign Economic Activity
Russia Moves to Regulate Cryptocurrencies Amid Sanctions Pressure