Russia Developing a system that will remotely detect and Identify Cryptocurrency Miners
Jan 31, 2018 Posted / 2060 Views
The Russian Ministry of Communications and Mass Media is reportedly developing a system that will help detect and identify cryptocurrency miners within Russia and her territories so as to avoid tax evasion, Vedomosti revealed last week.
The ministry of communication recently drafted a Bill to govern all cryptocurrency mining activities in Russia. The new Bill is expected to be submitted to the state duma by February 1 before it could be passed into a law.
In recent months several proposals have been made by Russian Top Government officials on how to capture taxes from cryptocurrency miners. In October last year Mr. Anatoly Aksakov reportedly proposed that cryptocurrency miners can be identified by gauging the amount of electricity consumption by every facilities inside rusia.
It is almost obvious that the project is possible technically given the level of technological advancement in Russia. However the economic viability of the scheme is still uncertain as a lot of resources might be required to develop the necessary devices and train the personnels to use them.
Russia’s Media House Ria Novosti aired it’s concern about the economic feasibility of the project saying,
“ Technically, it is feasible to develop such a capacity for the Ministry of communication, however its necessary to clearly evaluate the economic extend such activities and tactics. Perhaps monitoring the established large miners is more profitable than trying to develop capacity to monitor the whole mining business”
It is still unclear how the government will locate miners and how much money they are to pay in taxes accrued due to cryptocurrency mining activities. The method that will be used in designing the devices to detect miners too are still unknown but earlier proposed techniques of monitoring electricity consumption is inefficient.
As a consolation to cryptocurrency miners, the Russian Government is considering offering them tax holidays, power Quotas and reduced tariffs. On this same note the finance Minister Alexei Moiseev told reporters earlier that his ministry does not see any need for tax holidays for cryptocurrency miners. The ministry of finance is still holding that it will extend energy quotas and special tariff plans to cryptocurrency miners.
At the end of last week a conference was held at the Russian Ministry of communication Offices, a representative from the ministry of energy who could not be named by press time said he didn't see the need for any power quotas to cryptocurrency miners. He backed up his argument by saying Russia is among the countries with the cheapest power worldwide which make the country a good destination for setting up large power consumer computing facilities.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.