What to expect from legalization of mining

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On the one hand, mining's exit from the gray zone will provide a number of advantages. For example, the possibility of subsidies from the state, the absence of claims from the law enforcement system, legal protection for business, a decrease in the level of corruption in the crypto sphere, etc.

On the other hand, the legalization of mining will also create a number of inconveniences: the need for official registration and payment of taxes, strict reporting and increased control by the state.

With the change in legislation, the cryptocurrency sector will be much better integrated into the official economy, but will this change affect potential investors who will not want to legalize their activities under the new conditions? I, like other experts, consider three scenarios for further developments.

Positive option . Legalization of mining will attract new belgium phone number lead investors, help in the development of new startups and digital infrastructure. In the future, Russia can become an international hub for mining, and also improve its image as a country open to innovation and advanced technologies.

Negative option . Strict regulation and strict control by the law enforcement system will lead to an outflow of investors, who, for obvious reasons, will prefer countries with a more loyal jurisdiction to Russia. And crypto mining will become economically unprofitable due to the need to pay taxes and comply with all regulations.

The "status quo" option . With the gradual introduction of new rules and taxes, the situation as a whole will not change, and market participants will not feel any sharp improvements or deterioration in the situation. Mining in the Russian Federation will continue to develop at the current pace, but with integration into the official economy.

It is difficult to say which of these three scenarios is most likely. Everything will depend on how quickly and radically the new rules are introduced. But in any case, things will not be as they were before, and all participants in the cryptocurrency market need to prepare for serious changes.

On the topic. The Ministry of Energy has proposed banning mining in energy-deficient regions



Taxation of Mining: How It Could Work
What we should definitely expect from the legalization of mining is the introduction of taxation for everyone who mines crypto in Russia: from ordinary users to large companies.

There are several taxation options :

Tax based on mining profits. This scheme is similar to the one currently in effect for small businesses.
Tax based on consumed electricity. Will allow to clearly fix taxes even for small crypto mining farms with low profitability.
Personal income tax. Option with the possibility of deductions for electricity and equipment.
The latter example will make the tax burden more balanced and fair and will involve a large number of individual enthusiast miners in the process, who in the long term will significantly affect the overall crypto mining in Russia.