Russia Moves to Legitimize Bitcoin Mining with New Economic Classification

• Russian authorities are moving towards greater acceptance of Bitcoin mining as a recognized economic activity, with plans to assign specific OKVED codes to mining operations.
• This step aims to bring miners out of regulatory ambiguity and provide them with legal recognition, impacting areas such as taxation and licensing.

Bitcoin mining activity in Russia is likely to get greater acceptance in the form of economic activity, said a local source familiar with the matter. Osman Kabaloev, deputy director at the Ministry of Finance stated that they are willing to support this decision and thus were preparing to assign the OKVED code to the Bitcoin mining activity.

In Russia, an OKVED code is assigned to companies based on their specific economic activities, aiding in the acquisition of state-required licenses relevant to those activities. This classification also impacts various parameters, such as insurance premiums, tax regulations, and eligibility for state benefits.

This recognition would help bring miners out of the gray zone in Russia. However, Kabaloev noted that this codification could only occur after the passing of a law regulating cryptocurrency mining activities. “As far as we know, colleagues from the Ministry of Economic Development are already looking into this issue,” he added.

Introduced to the Russian State Duma in 2022, Russia has yet to pass a bill aimed at legalizing cryptocurrency mining. However, the Ministry of Finance anticipates finalizing and approving this regulation within the year, paving the way for the issuance of cryptocurrency mining-specific OKVED codes.

Alexander Razuvaev, a member of the supervisory board of the Guild of Financial Analysts and Risk Managers, highlighted the potential benefits of these measures for the Russian crypto-mining sector. “If implemented, Russian industrial mining could emerge as a significant player in the global market,” he concluded.

Russia Confirms BRICS Currency, Will XRP Find A Spot?

XRP has emerged prominently in discussions following Russia’s announcement regarding the BRICS group’s ambitious agenda to establish a new autonomous payment system. With BRICS pushing forward its currency autonomy initiative, the potential integration of XRP into this groundbreaking financial framework has garnered widespread attention. This strategic move seeks to diminish dependence on conventional financial structures while fostering economic cooperation among member states.

According to a research paper initially brought to light by XRP enthusiast Amelia, Russian President Vladimir Putin has affirmed the bloc’s commitment to advancing its alternative currency strategy. The document suggests that the group intends to explore the utilization of XRP, associated with Ripple, to facilitate cross-border settlements, per the Crypto News Flash report.

However, nothing is official as of now regarding the BRICS currency and the role of XRP as all member nations need to agree to it simultaneously. As reported by Crypto News Flash in May, the BRICS nations were also mulling the possibility of having a gold-backed currency.