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Russia to significantly reduce tax on crypto mining

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The Russian Ministry of Economic Development (RECD) announced it would cut a significant percentage of taxes on Bitcoin mining within the region.

This announcement further explained the Kremlin government’s plans to encourage more crypto mining within the region by mapping strategic areas of electricity surplus. Observers have labeled the move as one of the key ways the president of Russia can position the nation to get the most out of the crypto industry.

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While Russia appears to be looking to attract investment in crypto mining, it is still hesitant about its adoption of crypto. The governor of the Central Bank of Russia revealed earlier this week that the Apex bank “will spare no effort to convince the government and go into more detail about arguments they see significant risks in crypto.”

As work continues to develop a comprehensive guideline for crypto regulations, it is uncertain whether the government would approve the content of such regulations. President Putin remains unwavering in his decision to centralize and control all forms of crypto that would be issued or exchanged on Russian territory. The new law is also rumored to ban the activities of popular exchanges and data analytics platforms such as Coinbase, FTX, and Chainalysis, as the government fears these companies could be weaponized as data mining tools for details on Russian citizens.

Already, the country is becoming a visible force to be reckoned with within the crypto market. It is reported that more than 12 million cryptocurrency wallets have been opened in Russia alone, containing almost 2 trillion rubles. Russia currently ranks third in the world in terms of global mining capacity and has been touted after Kazakhstan began to succumb to the overload of its electricity supply capacity due to mining activities.

 

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