Russian Banking Association Wants to Categorize Crypto as Property

To clarify the legality of digital currencies in Russia, the country’s banking community has proposed to consider Crypto Mining Crypto Mining Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Cryptocurrency mining is defined as the process through which the transactions of a digital currency are authenticated then published to blockchain. For every crypto transaction conducted, a crypto miner is in charge of authenticating the information which, if approved, is then updated in the blockchain. Currently, the most popular cryptocurrencies being mined are Bitcoin, Litecoin, Ethereum Classic, Monero, and DASH. How is Cryptocurrency Mined?The process of crypto mining itself involves the s Read this Term as digital money mining, which will put the assets under the category of treasure or property.

Reported by local news agency Izvestia, the proposal is made on an unreleased report by the Association of Banks of Russia. Discussion on the report is scheduled for October 8.

“In the Austrian legislation it is assumed that a person who acquires virtual assets as a result of mining occupies them, that is, captures them, becoming their first legal owner. Such an approach has a completely rational legal meaning,” an excerpt from the translated report stated.

“Using legal fiction, it could be argued that the first owner of the crypto assets“ found them.”

An unclear environment for activities with digital currencies

Russia is one of the countries where the legality of cryptocurrencies is not clear at all. Though the central bank of the country pushed for a ban on digital currencies, it recently leaned in favor of regulations.

However, unclear laws make it tough to impose taxes on digital currencies.

According to the proposal on the report, crypto can be considered as property which can be exchanged in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term of goods or fiats, clarifying its categorization and thus taxation.

In addition, the taxation should be imposed on the profits made on the transaction of virtual currencies, as these assets cannot be considered as money, the report detailed.

Meanwhile, the Russian central bank is considering to launch a gold-backed digital currency.

The country is also one of the hotbeds for crypto mining. The authorities of the country recently nabbed millions worth crypto mining devices from an importer for dodging over a million in taxes.