As Russia rises to prominence as a global leader in the area, the State Duma, one of the chambers of the Russian parliament and the country’s legislative authority, has pushed for bitcoin mining to be authorized.
The proposal was made during a plenary session on November 11 in which Andrey Lugovoi, the first deputy head of the committee on security and anti-corruption, was introduced.
He remarked, “We have developed legislation and want to introduce it as quickly as possible.”
According to the author, Lugovoi based his concept on the fact that miners presently make over $2 billion per year in profits but do not share those revenues with the state due to a lack of clarity in the industry’s taxation.
Transparency for law enforcement
In addition, the deputy indicated that clarifying the law might be advantageous to law enforcement.
Due to a lack of regulation and a high turnover of the asset, law enforcement agencies are frequently at a loss when it comes to cryptocurrencies. They are unable to detect illegal behavior in individual acts or make the requisite procedural decisions, according to Lugovoi.
Lugovoi proposed the formation of an inter-committee working group to further investigate the problem, prompting State Duma Chairman Vyacheslav Volodin to encourage his deputy, Aleksei Gordeyev, to form such a group, which would be led by Lugovoi.
Russia at third spot
Russia has grown to become the world’s third-largest bitcoin miner, surpassing Kazakhstan in the near future, thanks to China’s ban on bitcoin mining.
In a Bitcoin Magazine article, Jesse Willms wrote, “When it comes to proof of work mining, there’s no better spot to go than Russia’s Siberian Irkutsk region, which is home to the majority of the country’s mining activities.”
“Its abundance of stranded hydroelectric power (only around 20% of it is currently used) makes it a popular destination for ecologically conscious miners,” according to the research.
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