If the Russian bill on mining is adopted in the current version, this will lead to the creation of a black market of exchangers in the country and the transfer of mined assets abroad. This was stated by Cryplogger interviewed experts.
You can’t sell – you will have to report income
It is the potential ban on the activities of cryptocurrency exchanges and exchangers in the Russian Federation, regardless of their jurisdiction, that experts consider the main threat.
Roman Nekrasov, co-founder of the ENCRY Foundation, suggests that the authorities, among other things, will tighten control over bank transfers. At the slightest suspicion of buying cryptocurrencies, the bank will freeze the account and demand an economic justification for transactions.
“Separately“ fun ”is the requirement for miners to report to the Federal Tax Service, to declare income from the sale of what, in fact, cannot be sold in Russia. That is, you can’t sell it, but if you please, pay the tax, ”Nekrasov pointed out.
He recalled that with the adoption of the law, the usual scheme, when miners sold bitcoins to exchangers, and those to individuals, would be outlawed.
The expert also raises questions about the declaration of the mined coins – it is not spelled out in detail.
“If a miner sold bitcoins on a foreign site, should he go into fiat? Does this imply the creation of a separate legal entity abroad and, as a result, double reporting to foreign and Russian tax authorities?” – listed Nekrasov.
Nevertheless, he remains optimistic about the future work of the crypto market in the Russian Federation, since “the laws of no country can paralyze it.”
CEO Indefibank Sergey Mendeleev called the provisions of the document “a ban on the profession.” The law does not yet restrict P2P transactions, but any public activity on the exchange and circulation of cryptocurrencies will be prohibited.
“Did you make an exchanger? Got under the law. Offered software for the exchanger? Start lubricating. Did you write in your resume that you know how to work with crypto? Bend over a little. Published an ad in the section UTS? Catch the bottle, ”the businessman described the prospects.
He also criticized the provisions regarding mining. The bill instructs the government to finalize the requirements for miners, which can include “anything”. The sale of mined cryptocurrencies is also difficult.
“Exchangers will be banned, and it will be possible to sell what is mined on foreign exchanges with it is not clear at all how the money received back in the Russian Federation. Or under a deal with an established experimental legal regime (EPR), but for this you will first need to write an experimental federal law, ”Mendeleev explained.
The threat of monopolization of the exchange market
Maria Agranovskaya, managing partner of the Grad Bar Association, believes that the bill is at least four years late and does not take into account the experience of developed countries in regulating the crypto market.
“Why is it necessary to actually bring exchange transactions to the black market? How is this property different from others? In fact, a large number of transactions are being exported abroad, on the profits from which the state could levy a tax, ”the lawyer said.
She also drew attention to the fact that the “promised” legalization of cross-border operations to pay for goods and services of Russian companies with cryptocurrency is not spelled out in the document.
Agranovskaya warned of a potential monopoly on the exchange of cryptocurrencies within the EPR.
“In principle, all the money from mining is possible to go abroad. There are fears that one player within the framework of the yet to be created EPR will not be able to cope with the volume of transactions, especially in the context of sanctions. Even dealing with DeFi will not be easy,” she added.
According to the lawyer, the taxation of mining does not require the development of separate rules and legislators could get by with clarifications regarding OKVED for miners and the procedure for confirming operations on a foreign exchange.
Panic early?
Significantly, the bill on mining does not change anything for market players, says Andrey Tugarin, managing partner of GMT Legal. According to him, the document reflects prohibitions that have already been spoken out in native form more than once, for example, in the methodological recommendations of the Central Bank.
He is convinced that miners will have no difficulties with tax reporting and they will continue to sell cryptocurrencies on foreign exchanges. Now we need to wait for clear written rules.
“The bill only hinted at the fact that accounting for mined coins would be mandatory, they did not provide any forms of documents, so it is difficult to assess the amount of data that needs to be indicated in the report,” the lawyer said.
Since the bill allows mining to individuals, Tugarin emphasized the need to prescribe the administration of personal income tax.
“So far, the document is damp and many more amendments await it, at least the introduction of an EPR, which will make it possible to create a Russian exchanger that can change mined bitcoin for rubles,” he said.
The lawyer suggested that with the intensive work of the government, such a project would be launched in a couple of years.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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If the Russian bill on mining is adopted in the current version, this will lead to the creation of a black market of exchangers in the country and the transfer of mined assets abroad. This was stated by Cryplogger interviewed experts.
You can’t sell – you will have to report income
It is the potential ban on the activities of cryptocurrency exchanges and exchangers in the Russian Federation, regardless of their jurisdiction, that experts consider the main threat.
Roman Nekrasov, co-founder of the ENCRY Foundation, suggests that the authorities, among other things, will tighten control over bank transfers. At the slightest suspicion of buying cryptocurrencies, the bank will freeze the account and demand an economic justification for transactions.
“Separately“ fun ”is the requirement for miners to report to the Federal Tax Service, to declare income from the sale of what, in fact, cannot be sold in Russia. That is, you can’t sell it, but if you please, pay the tax, ”Nekrasov pointed out.
He recalled that with the adoption of the law, the usual scheme, when miners sold bitcoins to exchangers, and those to individuals, would be outlawed.
The expert also raises questions about the declaration of the mined coins – it is not spelled out in detail.
“If a miner sold bitcoins on a foreign site, should he go into fiat? Does this imply the creation of a separate legal entity abroad and, as a result, double reporting to foreign and Russian tax authorities?” – listed Nekrasov.
Nevertheless, he remains optimistic about the future work of the crypto market in the Russian Federation, since “the laws of no country can paralyze it.”
CEO Indefibank Sergey Mendeleev called the provisions of the document “a ban on the profession.” The law does not yet restrict P2P transactions, but any public activity on the exchange and circulation of cryptocurrencies will be prohibited.
“Did you make an exchanger? Got under the law. Offered software for the exchanger? Start lubricating. Did you write in your resume that you know how to work with crypto? Bend over a little. Published an ad in the section UTS? Catch the bottle, ”the businessman described the prospects.
He also criticized the provisions regarding mining. The bill instructs the government to finalize the requirements for miners, which can include “anything”. The sale of mined cryptocurrencies is also difficult.
“Exchangers will be banned, and it will be possible to sell what is mined on foreign exchanges with it is not clear at all how the money received back in the Russian Federation. Or under a deal with an established experimental legal regime (EPR), but for this you will first need to write an experimental federal law, ”Mendeleev explained.
The threat of monopolization of the exchange market
Maria Agranovskaya, managing partner of the Grad Bar Association, believes that the bill is at least four years late and does not take into account the experience of developed countries in regulating the crypto market.
“Why is it necessary to actually bring exchange transactions to the black market? How is this property different from others? In fact, a large number of transactions are being exported abroad, on the profits from which the state could levy a tax, ”the lawyer said.
She also drew attention to the fact that the “promised” legalization of cross-border operations to pay for goods and services of Russian companies with cryptocurrency is not spelled out in the document.
Agranovskaya warned of a potential monopoly on the exchange of cryptocurrencies within the EPR.
“In principle, all the money from mining is possible to go abroad. There are fears that one player within the framework of the yet to be created EPR will not be able to cope with the volume of transactions, especially in the context of sanctions. Even dealing with DeFi will not be easy,” she added.
According to the lawyer, the taxation of mining does not require the development of separate rules and legislators could get by with clarifications regarding OKVED for miners and the procedure for confirming operations on a foreign exchange.
Panic early?
Significantly, the bill on mining does not change anything for market players, says Andrey Tugarin, managing partner of GMT Legal. According to him, the document reflects prohibitions that have already been spoken out in native form more than once, for example, in the methodological recommendations of the Central Bank.
He is convinced that miners will have no difficulties with tax reporting and they will continue to sell cryptocurrencies on foreign exchanges. Now we need to wait for clear written rules.
“The bill only hinted at the fact that accounting for mined coins would be mandatory, they did not provide any forms of documents, so it is difficult to assess the amount of data that needs to be indicated in the report,” the lawyer said.
Since the bill allows mining to individuals, Tugarin emphasized the need to prescribe the administration of personal income tax.
“So far, the document is damp and many more amendments await it, at least the introduction of an EPR, which will make it possible to create a Russian exchanger that can change mined bitcoin for rubles,” he said.
The lawyer suggested that with the intensive work of the government, such a project would be launched in a couple of years.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
