Cryptocurrency mining should be recognized as an economic activity
Posted: Thu Jan 23, 2025 7:25 am
Mining is proposed to be recognized as an industry and assigned a code of the All-Russian Classifier of Types of Economic Activity (OKVED). The largest market player BitRiver has addressed this initiative to the Ministry of Industry and Trade (Izvestia has the document). If it is adopted, the requirements for industrialists will also apply to cryptocurrency miners. The idea was supported by the State Duma Committee on the Financial Market. They noted that the innovation will be included in the bill on regulating the sphere, which is planned to be adopted in 2023. Assigning OKVED to mining is possible after the adoption of the regulatory framework, the Ministry of Economic Development stated.
In Search of Code
and an OKVED industrial code germany whatsapp resource should be established for such enterprises. The largest player in the Russian market, the operator of data processing centers BitRiver, addressed the Minister of Industry and Trade Denis Manturov with such a proposal. OKVED is an activity code that an individual entrepreneur or company chooses upon registration. It determines, among other things, the need to obtain a license, the rate of insurance premiums, and the possibility of receiving benefits from the state.
For example, such activities can be included in the "Manufacturing" classifier section by adding an additional grouping there, believes Oleg Ogienko, Director of Government Relations at BitRiver.
Providing miners with an activity code will allow for the correct regulation of the industry, the document emphasizes. State decisions relevant to industry will also be effective for cryptocurrency mining. This will help develop mining — as an energy-intensive industry, it will be taken into account in plans for the development of the electric power industry, Oleg Ogienko noted.
He added: the initiative will also allow for the correct establishment of taxation in this area. In industry, taxes are levied upon the sale of goods, which means that when mining crypto, they will have to be paid upon the sale of digital currency. In addition, if mining is perceived as an industry, some preferences typical for enterprises in the manufacturing sector may be extended to it in the future.
The proposal was supported by the head of the State Duma Committee on Financial Markets, Anatoly Aksakov. The initiative has already been sent to the government for approval, the deputy told Izvestia. According to him, there was no rejection of the idea. The document specifies the assignment of an OKVED industrial code for mining and other regulatory issues. This will help to correctly establish taxation in the field of cryptocurrency mining, Anatoly Aksakov believes. It will also be possible to introduce restrictions in regions of the Russian Federation with energy shortages.
The code will be included in the proposed draft law on mining, which also regulates taxation in this area, the deputy noted. According to him, the document may be adopted already in the autumn session, then it will work from next year. Many enterprises in the field of cryptocurrency mining are ready to work within the law and pay taxes, so this process should be introduced into the legal field as soon as possible, Anatoly Aksakov emphasized.
Assignment of OKVED codes for mining is possible if there is regulation of this sphere with a description of the quantitative and qualitative characteristics of the type of activity, the press service of the Ministry of Economic Development noted. They added: these bills are being developed in the Ministry of Finance and the Ministry of Energy. If there is an approved regulatory framework, the Ministry of Economic Development will provide support for the project to change the OKVED classifier, the department reported.
Izvestia sent a request to the named ministries. The Central Bank only reported that they are participating in the discussion of approaches to regulating mining.
In Search of Code
and an OKVED industrial code germany whatsapp resource should be established for such enterprises. The largest player in the Russian market, the operator of data processing centers BitRiver, addressed the Minister of Industry and Trade Denis Manturov with such a proposal. OKVED is an activity code that an individual entrepreneur or company chooses upon registration. It determines, among other things, the need to obtain a license, the rate of insurance premiums, and the possibility of receiving benefits from the state.
For example, such activities can be included in the "Manufacturing" classifier section by adding an additional grouping there, believes Oleg Ogienko, Director of Government Relations at BitRiver.
Providing miners with an activity code will allow for the correct regulation of the industry, the document emphasizes. State decisions relevant to industry will also be effective for cryptocurrency mining. This will help develop mining — as an energy-intensive industry, it will be taken into account in plans for the development of the electric power industry, Oleg Ogienko noted.
He added: the initiative will also allow for the correct establishment of taxation in this area. In industry, taxes are levied upon the sale of goods, which means that when mining crypto, they will have to be paid upon the sale of digital currency. In addition, if mining is perceived as an industry, some preferences typical for enterprises in the manufacturing sector may be extended to it in the future.
The proposal was supported by the head of the State Duma Committee on Financial Markets, Anatoly Aksakov. The initiative has already been sent to the government for approval, the deputy told Izvestia. According to him, there was no rejection of the idea. The document specifies the assignment of an OKVED industrial code for mining and other regulatory issues. This will help to correctly establish taxation in the field of cryptocurrency mining, Anatoly Aksakov believes. It will also be possible to introduce restrictions in regions of the Russian Federation with energy shortages.
The code will be included in the proposed draft law on mining, which also regulates taxation in this area, the deputy noted. According to him, the document may be adopted already in the autumn session, then it will work from next year. Many enterprises in the field of cryptocurrency mining are ready to work within the law and pay taxes, so this process should be introduced into the legal field as soon as possible, Anatoly Aksakov emphasized.
Assignment of OKVED codes for mining is possible if there is regulation of this sphere with a description of the quantitative and qualitative characteristics of the type of activity, the press service of the Ministry of Economic Development noted. They added: these bills are being developed in the Ministry of Finance and the Ministry of Energy. If there is an approved regulatory framework, the Ministry of Economic Development will provide support for the project to change the OKVED classifier, the department reported.
Izvestia sent a request to the named ministries. The Central Bank only reported that they are participating in the discussion of approaches to regulating mining.