Billion

Sergey Bezdelov, the Director of the Association of Industrial Mining (AIM), has shed light on the significant tax potential within <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>'s cryptocurrency mining sector. At the APM briefing titled "Industrial Mining Market in Russia: Prospects and Development Forecasts," Bezdelov estimated that the Russian government could collect up to 50 billion rubles annually in taxes from the industry. This projection is based on balanced and fair regulation, which he suggests could be implemented by 2025, according to <a href="https://bits.media/sergey-bezdelov-s-maynerov-v-rossii-mozhno-sobirat-50-mlrd-rubley-nalogov-ezhegodno-/" rel="noopener noreferrer nofollow">Bits.media</a>.
Bezdelov highlighted that the current electric capacity consumed by the cryptocurrency mining market in Russia stands at approximately 2.5 gigawatts (GW), with industrial miners using around 1.7 GW of this capacity. Despite the sizeable consumption and potential for substantial tax revenue, the sector faces a lack of legislative regulation. Key concepts like "crypto mining" and "crypto mining activity" remain undefined in Russian law, and there is no specific classification for crypto mining in the All-Russian Classifier of Economic Activities (OKVED).
The absence of clear regulations and definitions presents challenges for the industry. The lack of legal clarity makes it difficult for <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">crypto miners</a> to operate within a defined framework and hinders the potential for tax collection by the state. However, the situation also represents an opportunity for the Russian government to tap into a lucrative source of revenue. By establishing fair and balanced regulations, the government could not only provide a legal foundation for the industry but also benefit from significant tax inflows.
Bezdelov's remarks come amid criticism from the expert council of the working group on legislative regulation of cryptocurrencies in the State Duma. The council criticized the Ministry of Energy's proposal to raise <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> tariffs for miners, a move that could potentially hamper the growth and profitability of the industry.

Russia’s Crypto Mining Tax Potential: 50 Billion Rubles Annually

Ultramining_Eng

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