The surged adoption and popularity of cryptocurrencies in the past few years has backed the growth of the crypto mining sector. Almost every year crypto miners gather billions in digital assets for mining and validation, however the profits generated depend on the prices of Cryptocurrencies.
The Russian government has been actively trying to structure a favourable environment for cryptocurrencies in the nation. As per a recent update the finance ministry of Russia is planning to introduce a tax on the energy consumption of crypto miners.
While talking to a regional media agency the Deputy Finance Minister of Russia,Ivan Chebeskov notes that “Our target picture is still taxation on profit. This is a long-term goal. We understand that this is, in principle, the correct structure, like everyone else, like any of our businesses. An intermediate structure could be taxation in the form of excise taxes, but so far the decision has not been made.”
He additionally added “ In principle, it is easier to measure electricity consumption than to calculate the cost of bitcoins received in a wallet. Because wallets can be different: some wallets can be declared, while miners may not declare some wallets, that is, this is more of an administrative issue.”
In the beginning of August 2024, the president of Russia Vladimir Putin signed legislation legalizing the experimental use of cryptocurrencies in international payments and Forex transactions.
As per market experts, the crypto market in the nation is expected to grow at an appreciable pace in the coming year, the growth could likely be fueled by the surge adoption of cryptocurrencies in Russia.
The broader speculation asserts that the move to impose taxes on energy consumption by crypto miners came following the surge in revenue from crypto mining in other nations with a favourable environment.
Other Market News Updates
In a media trial on September 20, the Federal Security Service of Russia notes that it has detained an individual for helping Ukraine and facilitating transactions related to cryptocurrency.
The identity of the detained individual have been kept undisclosed, although is charged under Article 275 of Russian criminal code, which also includes the crimes of high treason.
The authorities of Russia have been constantly working to detain and punish the individuals helping Ukraine during the time of war. However the war has dragged Ukraine to the lowest development levels in the past few years.
Crypto Market Price Update
In past few weeks the broader cryptocurrency made have suffreded severe losses majorly backed by the voltailty and major outflow of funds from the cryptocurrency market.
When writing the fear and greed index powered by CoinMarketCap was above reflecting a mixed sentiment in the market and at the same time cryptocurrency market capitalization was $2.21 trillion with an intraday surge of 2.88%.
Bitcoin price grew over 1.80% intraday and more than 9% in a week reaching $63,582; similarly trading price of Ethereum grew 4.80% in the past 24 hours crossing the awaited resistance of $2500, and trading at $2,544.
