The Russian government is under increased pressure to create more friendly regulations for cryptocurrencies in the country. Sergey Katyrin, head of the Russian Federation Chamber of Commerce and Industry (RF CCI), sent a letter to Russia's finance minister urging the government to recognize bitcoin and cryptocurrency mining as a business in the country. The letter comes after Russia revealed plans to create regulations for the cryptocurrency industry by the end of this year.

Russian Chamber of Commerce Calls for Legal Recognition of Cryptocurrency Mining as a Business

Russian media outlet TASS reports that the Russian Chamber of Commerce has suggested that cryptocurrency mining should be given legal status as a business in the country. Sergey Katryin, head of the nonprofit organization representing all businesses in the country, sent a letter to Russia's finance minister in which he urged that the country's regulations should be amended to clarify all matters related to digital assets, especially cryptocurrency mining.

Significant amendments to existing legislation and a series of new regulatory acts that would, inter alia, determine the legal status of mining as a commercial activity and thus potentially exclude the activity from the “gray zone” appear to be necessary. The government has also proposed a new regulation of the mining sector, Katyrin noted.

The letter also outlines other aspects of cryptocurrencies that need to be regulated. These include taxes and other mandatory payments on cryptocurrencies, the legal status of cryptocurrencies and their use as a medium of payment, and how the banking industry interacts with cryptocurrencies and cryptocurrency investors. Katyrin suggested that while Russia continues to accept only the ruble as legal tender, it is practical to examine the use of cryptocurrencies as a "digital expression of value.

Cryptocurrency regulations are still a serious debate worldwide

Katyrin's letter to the finance minister comes after recent reports that the Russian government is working on a regulatory framework for cryptocurrencies. The government estimates that Russians have more than $200 billion worth of cryptocurrency investments. The Kremlin also expects that it could earn about $2 billion a year by regulating the cryptocurrency industry.

The growth of the cryptocurrency industry has prompted many countries to seriously consider cryptocurrency regulations. Around the world, cryptocurrency regulations are taking shape in various forms, particularly those related to taxation. The IRS, the U.S. tax agency, raised hopes of clarification by saying it may not tax rewards received through proof-of-stake agreements until the tokens are sold. This week, the Indian government similarly unveiled plans to tax cryptocurrency gains.

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