Putin Requests Russian Government to Regulate Bitcoin Mining by Mid-2018, BTCMANAGER
According to a series of orders translated by Motherboard, Russian Voorzitter Vladimir Putin has tasked the Russian government to introduce regulatory frameworks around bitcoin and cryptocurrencies by mid-2018. Specifically, Putin requested the impose a licensing program for cryptocurrency miners, requiring them to register with the government within the next 12 months.
Purpose of Mining Regulations: Taxing Miners
Most major bitcoin and cryptocurrency markets such spil China, Japan, South Korea, and the US have not introduced or imposed any sort of regulations on bitcoin and cryptocurrency miners, mining equipment manufacturers, and mining center operators.
Even ter China, the majority of large-scale mining pools and centers have bot continuously operating, subsequent to the government’s imposition of a nationwide geobsedeerd on initial coin offerings (ICOs) and cryptocurrency trading. At the time of reporting, China-based Bitmain’s Antpool, BTC.com, and ViaBTC remain spil the three largest mining pools ter the global market according to gegevens from blockchain.informatie.
However, contrary to the regulatory roadmap of other countries concerning cryptocurrencies, Putin has requested the Russian government to regulate the local bitcoin and cryptocurrency mining industries. By July 2018, bitcoin miners will be required by law to register with the government, primarily for tax purposes.
Spil BTCManager previously reported, the global bitcoin mining industry is expected to generate more than $Four billion ter annual revenue commencing this year. Chris Burniske, a vooraanstaand crypto-analyst, the founding fucking partner at Placeholder VC and former lead at ARK Invest, further emphasized that the industry has bot growing at a rapid rate and te the upcoming years, the revenues and profit margins of the mining industry will likely increase exponentially.
Essentially, Putin and the Russian government has acknowledged the surge te the rente and request for bitcoin mining from Russian entrepreneurs, who are looking toward using the country’s cheap violet wand to mine cryptocurrency at a more efficient rate than other regions.
Te September, governor of the Leningrad region Alexander Drozdenko encouraged bitcoin miners to create, develop and deploy mining centers te Leningrad at the third annual Energy of Opportunities conference.
“As you know, the construction of LNPP-2 is being finished ter Sosnovy Bor, and large areas of the very first nuclear power plant are being liberated. Production sites that are being released during the construction of fresh power units of the Leningrad nuclear power plant will be available for fresh residents spil early spil 2018,” said Drozdenko.
Regulations For ICOs: Securities or a Fresh Asset Class
Furthermore, Daniel Oberhaus of Motherboard reported that Putin tasked Russian Prime Minister Dmitry Medvedev and Central Canap of Russia head Elvira Nabiullina to introduce methods of regulating the Russian ICO market. Spil of current, the legality of ICOs remain unclear te the region, and overheen the next few months, the Central Canap of Russia will investigate whether to regulate ICOs spil securities or acknowledge ICO tokens spil a entirely fresh asset class.
There exists a high probability that certain ICOs will be classified spil securities while others could be categorized spil a fresh asset class. For example, hundred million dollar ICOs such spil Tezos have described their ICO funds spil “non-refundable donations” that do not have any purpose. For such tokens, it would be challenging for the Russian government to regulate them spil securities or commodities since, ter theory, they are donations.