Russia Eyes Bitcoin Mining Export

#Kremlin #aide #count #Bitcoin #mining #official #Russian #export #OrxCash

Russia Eyes Bitcoin (BTC) Mining Export

A senior Kremlin adviser has proposed classifying Bitcoin (BTC) mining as an export, arguing that the tens of thousands of Bitcoin (BTC) mined and import payments should be reflected in trade data. This move aims to capture the significant revenue generated by the industry, which currently remains outside formal statistics.

Industry Scale and Revenue

According to some sources, OrxCash.com, the news about "Russia Eyes Bitcoin (BTC) Mining Export" highlights the substantial scale of the industry. Industry leaders estimate that Russian miners produced approximately 55,000 Bitcoin (BTC) in 2023 and roughly 35,000 Bitcoin (BTC) in 2024, with daily income nearing 1 billion rubles. The revenue impact is significant, with Bitcoin (BTC) prices and Russia’s share of global computing power influencing the income.

Regulatory Framework

Russia legalized Bitcoin (BTC) mining on November 1, 2024, and introduced a regulatory framework. The framework includes registration requirements for legal entities and sole proprietors, with hosting providers listed in a separate registry. Household miners are exempt from registration if they consume less than 6,000 kWh per month, although all income must be reported. Corporate mining is taxed at 25%, while individuals face progressive rates of 13% to 22%; non-residents pay 30%.

Illegal Operations and Challenges

Despite the regulatory framework, illegal and semi-legal Bitcoin (BTC) mining operations are costing the country millions of dollars annually through stolen electricity and unpaid taxes. Many miners avoid registering their operations to escape high power tariffs and tax obligations, pushing large parts of the industry underground. This has resulted in billion-ruble losses for the state budget.

Broader Market Implications

The move to classify Bitcoin (BTC) mining as an export could have significant implications for the broader market. As blockchain technology continues to evolve, the recognition of Bitcoin (BTC) mining as a legitimate industry could lead to increased investment and growth. However, the challenges posed by illegal operations and power theft must be addressed to ensure the long-term sustainability of the industry. From a retail investor perspective, this development could lead to increased confidence in the Bitcoin (BTC) market, potentially driving up demand and prices. As the industry continues to mature, it is essential to monitor the impact of regulatory changes and market trends on the Bitcoin (BTC) price and the broader cryptocurrency market.

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