Legislators in Russia’s lower house also abandoned the idea of a separate registration for mining operators.
In less than a month, the Russian parliament’s draft crypto mining bill has lost several critical features, including the requirement for mining operations to join a special registration and a one-year tax amnesty for all those who have registered. According to the argument, the earlier draft would result in government budget deficits.
Last Friday, a new draft of the law “On mining in Russian Federation” surfaced in the database of the Russian parliament’s lower chamber, the State Duma. The paper differs significantly from the previous version, which was given by co-sponsors on April 29.
While the text in general remains unchanged, the revised draft lacks the sub-section about a registration of mining operators, which enterprises would have 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 edition. For corporate registration, the companies would follow a regular procedure.
Another change nullified the promise of tax relief during the first year of registration. The grace period was to apply to customs clearance of mining equipment, all profits realized prior to the passage of the law, and any potential violations of the Russian government’s severe prohibitions on money transfers overseas, which were implemented on March 8. According to local media, the Duma’s legal department opposed the registration and tax amnesty proposals in its examination of the text, claiming that they could “potentially inflict costs on the federal budget.”
Anatoly Aksakov, the head of the State Duma’s financial markets committee, announced on April 7 that crypto-related modifications to the federal tax code are expected to pass before the conclusion of the summer parliamentary session. It is unknown whether they will include any mining specifications.