Why does mining need OKVED and when will it be introduced?

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The authorities are preparing to officially recognize cryptocurrency mining as an economic activity. To this end, they plan to assign an OKVED code to mining. The Ministry of Finance supports this initiative, Osman Kabaloev, deputy director of the ministry's financial policy department, told Izvestia.

The OKVED code is the type armenia whatsapp number database of activity that an individual entrepreneur or company chooses when registering. It determines, among other things, the need to obtain a license, the rate of insurance premiums, and the receipt of benefits from the state.

However, before assigning a code to mining, it is first necessary to adopt a law on regulating cryptocurrency mining, Osman Kabaloev clarified. And depending on what its final version turns out to be, the final parameters for OKVED will be determined. Either an existing economic activity code can be used, or a separate one can be introduced for mining.

“As far as we know, our colleagues from the Ministry of Economic Development are already working on this issue,” added Osman Kabaloev.

The Ministry of Economic Development did not promptly provide Izvestia with a comment. However, in March, the department reported that it also supported the introduction of OKVED for mining. The ministry specified that the initiator of this was the Ministry of Energy. Izvestia contacted the Ministry of Energy and the Central Bank with a question about how they assess this proposal.

Currently, there is no concept of "mining" in the legislation and, in general, no legal framework that would regulate legal relations in this area, the press service of the Ministry of Industry and Trade told Izvestia. They emphasized that at the current stage, it is necessary to legally define what mining is. As well as the rules for the issue, accounting and circulation of cryptocurrencies, the status of companies, their rights and obligations. It is also necessary to establish guarantees for the protection of investors' rights.

The bill on regulating mining was introduced to the State Duma in November 2022. However, it has not yet passed the first reading. The document proposes the legalization of cryptocurrency mining and the declaration of income from this activity. The Ministry of Finance expects the adoption of legislation on regulating digital currencies in 2024, Alexey Yakovlev, director of the ministry's financial policy department, told Izvestia earlier. In his opinion, the regulations could be approved by August.