Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
A prominent figure in the Russian Bitcoin (BTC) mining sector has stated that industrial operators in the nation mined BTC 54,000 (valued at approximately $3 billion) last year.
The remarks were made by Sergey Bezdelov, the leader of the Industrial Mining Association, as reported by the newspaper Izvestia.
Potential Tax Revenue Surge?
Bezdelov spoke during a session focused on crypto mining at the Eastern Economic Forum in Vladivostok.
The head of the industry group noted that “based on our calculations,” the industrial crypto mining sector is poised to generate an “annual increase in tax revenue” for the Russian Treasury amounting to around 50 billion rubles ($559 million).”
Bitcoin approached a one-month low amid a broader retreat from riskier assets in global markets due to economic concerns https://t.co/mGIxcF0Xyr
— Bloomberg Crypto (@crypto) September 4, 2024
Bezdelov expressed optimism about new financial investments as major corporations support industrial miners.
He suggested that this would enable Russian Bitcoin miners to establish additional data centers and acquire new equipment.
“New investors are arriving. New infrastructural investments are on the way.”
Bezdelov
The industry leader further mentioned that this influx of funds would lead to increased wages. He indicated that the financial boost would enhance the “structure” within the sector.
Additionally, he stated it would provide improved “labor power” and create “new IT-related job opportunities.”
Sergey Bezdelov, the head of the Industrial Mining Association, speaking at a crypto mining-related session at the Eastern Economic Forum, in Vladivostok, Russia. (Source: Izvestia/Screenshot)
New Crypto Regulations Implemented
Related Posts
As of September 2, Russian crypto mining entities are required to register their operations with a central regulatory authority.
They will also be able to pay taxes on their earnings for the first time at the conclusion of the current financial year.
However, Moscow has yet to finalize the specifics regarding how miners will be taxed. The Central Bank aims to ensure that miners convert their coins to fiat immediately.
It seeks to prevent them from holding assets in crypto wallets until market conditions are more favorable.
Russia and Malaysia will discuss collaboration in areas from aerospace to advanced technologies on Wednesday https://t.co/PzGz239hdL
— Bloomberg (@business) September 4, 2024
Starting in November this year, Russian “legal entities and individual entrepreneurs listed on a register maintained by the Ministry of Digital Development” will be granted “the right to engage in mining.”
Private Russian Bitcoin miners will also be permitted to continue their operations, provided they do not exceed the new electricity consumption limits.
Russian Bitcoin Miners to Stay Focused on BTC
Bezdelov and others have previously indicated that over 90% of industrial Russian crypto miners concentrate their efforts on Bitcoin.
A smaller proportion of industrial operators reportedly prefer to mine Ethereum (ETH) and major altcoins like Litecoin (LTC).
Earlier this year, Bezdelov mentioned that the Russian Bitcoin mining sector could see a $4 billion increase.
However, he cautioned Moscow against raising tariffs for crypto miners to excessively high levels.
The post Russian Bitcoin Miners: Industrial Players ‘Mined BTC 54,000 in 2023′ appeared first on Cryptonews.
