Russian miners will not be able to make profit in the BTC and ETH

Russian miners will not be able to make profit in the BTC and ETH

Ethereum mining is DOOMED if this happens…


Russian miners will not be able to make profit in the BTC and ETH

  • Russian officials ban mining rewards

  • Bitcoin can be inherited but not gifted

  • Crypto experts see no logic in the bill

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New amendments to the bill “On digital financial assets”Introduced by the Ministry of Finance will not allow miners to make a profit in cryptocurrency.

You can mine, but you cannot receive a reward

Several amendments were made by representatives of the Ministry of Finance of the Russian Federation to the draft law “On digital financial assets”. According to the recommendations of the Ministry of Finance, transactions with cryptocurrencies will be considered legal only in three cases: inheritance, receipt of digital assets as a result of bankruptcy and enforcement proceedings. At the same time, cryptocurrency cannot be used as a means of payment. It is proposed to introduce administrative and criminal liability for the illegal circulation of digital assets and transactions with them. For citizens, it is planned to introduce a fine of up to 100 thousand rubles and seven years in prison. For legal entities, the punishment is even stricter: up to 1 million rubles of fine.

A separate clause in the amendments concerns cryptocurrency mining. Ministry officials propose to allow mining as a field of activity, but prohibit receiving rewards for mined coins in cryptocurrency, which contradicts the very essence of coin mining. According to the Finance Ministry’s proposal, digital money production operations should be devoid of financial value. Then it is not clear how exactly miners should receive a reward if it is paid in the BTC or ETH..

“At the stage of adopting the document, the legislators realized that no one understood it, and decided to concretize it, but it turned out even less clear,” the advisor of the IT practice of the Tomashevskaya company quotes&Partners of Russia by Roman Yankovsky Izvestia edition.

If the amendments are adopted, mining in Russia will not make sense, since miners will not be able to receive the earned reward. This automatically cancels Russia’s plans to conquer the world mining market. Earlier, BeInCrypto reported that Russia could become an oasis for miners.

Russian miners will not be able to make profit in the BTC and ETH

“We expect Russia to become more visible in bitcoin mining. The region produces green, renewable and surplus electricity throughout the year, and the government supports such enterprises economically, which bring large mining enterprises such as ours to the region, ”says Igor Runets, CEO of BitRiver mining farm..

Russian miners will not be able to make profit in the BTC and ETH

How to inherit bitcoins in Russia

Russian crypto experts are confident that the bill needs serious revision. Some provisions of the document are frankly meaningless. For example, the section on inheritance of crypto assets. According to the proposals made, bitcoin can be inherited within the family, but donation of cryptoassets is prohibited.

“It turns out that for the legal transfer of bitcoin within the family, a person will only have to commit suicide,” said Mikhail Uspensky, deputy chairman of the commission on legal support of the digital economy of the Moscow branch of the Russian Bar Association.

In addition, the clause on the receipt of crypto coins in the event of bankruptcy raises individual complaints. Experts assure that the proposed bill contradicts itself. In particular, the document says that obtaining digital assets will be legal during the implementation of the bankruptcy procedure, but a bankrupt company simply cannot sell digital coins, since this is prohibited by the bill.

“If transactions with virtual currencies are prohibited in Russia, as required by the bill, it will be impossible to sell bitcoins and ethers on account of the defaulter’s debt,” explained Deputy Minister of Justice Denis Novak.

Experts have previously reported that the wording of the bill was illogical. So, in an exclusive interview for BeInCrypto, Tatiana Maksimenko, PR director of the Garantex cryptocurrency exchange, said that the law “On digital financial assets” was created in order to bypass it.

“The adopted bill is not that bad. It is illogical: cryptocurrency exists outside of jurisdiction. Nothing prevents the user from purchasing cryptocurrency on an exchange registered in a foreign jurisdiction, and even paying with it for goods and services provided by a company also registered outside of Russia. In fact, these commodity-money relations are outside the perimeter of regulation of the Russian authorities, therefore, the ban on the use of cryptocurrency as a means of payment is hardly realizable in practice. The ban seems to be there, but it is so easy to get around that it is as if it does not exist, “Tatiana Maksimenko stressed..

The history of the evolution of the draft law “On digital financial assets” can be found here.

Russian miners will not be able to make profit in the BTC and ETH


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