As the eyes of crypto investors are on the Russian moves toward crypto regulation, in less than a month, the Russian parliament’s draft of the crypto mining bill has lost many critical features, including the need for mining operations to join a special registration and a one-year tax exemption for all those who have registered. The earlier draft would result in a government budget deficit.
A new draft of the law “On mining in Russian Federation,” dated May 20, was found in the database of the Russian parliament’s lower house, the State Duma. The paper differs significantly from the previous version, which was given by co-sponsors on April 29.
While the text remains mostly similar, the revised draft excludes the sub-section regarding the registration of mining operators, which firms would be required to join in order to continue working. To begin mining, crypto mining companies must register as sole proprietors or self-employed in the most recent version. For corporate registration, the firms would follow a regular process.
Another modification eliminated the promise of tax relief during the first year of registration. The grace period was to apply to clearing customs of mining equipment, any profits realised prior to the passing of the law, and any potential violations of the Russian government’s severe prohibitions on money transfers overseas, which were enforced on March 8. According to local media, the Duma’s legal department opposed the registration and tax amnesty proposals in its review of the bill, claiming that they might “potentially inflict expenditures on the federal budget.”
Anatoly Aksakov, the head of the State Duma’s financial markets committee, announced on April 7 that crypto-related amendments to the federal tax law are expected to pass before the conclusion of the summer parliamentary session. It is unknown if they will contain any mining standards.
