RIYADH: The Russian government has signaled its willingness to recognize cryptocurrency mining as a legal entrepreneurial activity and tax it accordingly.
Officials believe the regulatory move will benefit both the state and the crypto industry.
The sector remains unregulated, the Russian Ministry of Finance has recently acknowledged in comments to the local press.
The industry is expanding in Russia, which is rich in energy resources and ranks first among global destinations in terms of share of the global hashrate.
Mining should be regulated precisely as an entrepreneurial activity as it fits in the legal definition provided in the Civil Code, according to the Russian Ministry of Economic Development.
It emphasized this would allow the government to tax miners’ revenue and increase budget receipts.
“This is exactly an area in which the state can benefit in the form of taxes, and people can legalize their income, big business is also becoming more and more interested in this,” Alexey Minaev, deputy director of the ministry’s Digital Economy Development Department told a Russian daily.
Coinbase trading volumes
US cryptocurrency exchange Coinbase Global Inc. reported a nearly 30 percent fall in the third quarter trading volumes on a sequential basis, hit by lower volatility and declining prices for bitcoin and other cryptocurrencies.
Trading volumes fell to $327 billion in the second quarter from $462 billion and Bitcoin trading comprised 19 percent, down from 24 percent last quarter.
The company’s shares tumbled 13 percent in trading after the bell. Total revenue fell to $1.31 billion from $2.23 billion in the prior quarter, also missing estimates of $1.57 billion.
“A little bit less concerned about what's the recent rally; recent growth is becoming less of a speculative thing,” Coinbase CEO said.
Mastercard credit
Mastercard has announced that it has partnered with three crypto service providers across the Asia Pacific region to launch the region’s first crypto-linked payment cards.
The three partners are Amber Group, Bitkub in Thailand, and Coinjar in Australia. Through this partnership, they will launch Mastercard payment cards funded with cryptocurrency.
“For the first time, consumers and businesses in the Asia Pacific region will be able to apply for crypto-linked Mastercard credit, debit or prepaid cards,” Mastercard reported.
This announcement comes at a time when interest in cryptocurrencies is at an all-time high across the region.
Trading
Bitcoin, the leading cryptocurrency, traded higher on Wednesday, rising by 1.79 percent to $68,312 at 6:16 p.m. Riyadh time.
Ether traded at $4,852, up 1.25 percent, according to data from CoinDesk.
