Russia Prepares To Allow Crypto Mining In Some Regions
Russian officials have resorted to working on regulatory clarity in the country’s crypto mining market, outlining the parameters that companies must follow.
According to a recent RBC-Crypto report, Russian officials are planning to allow mining activities solely in energy-rich regions while outlawing it in energy-scarce areas. The law is expected to be passed before the end of the year.
Anatoly Aksakov, Chairman of the legislative Financial Market Committee, reiterated the authorities’ stance, saying the energy-intensive practice should be forbidden in places with power shortages. The deputy further stated that the bill will be brought to the State Duma.
The development comes in response to a recommendation by the Ministry of Economic Development to allow crypto mining in locations with reliable power supply.
Mining activities will be permitted in areas with hydroelectric and nuclear power facilities, according to Roman Nekrasov, co-founder of the ENCRY Foundation.
Hydroelectric power plants are known to exist in Irkutsk Oblast and Krasnoyarsk Krai, but nuclear power plants may be found in Tver, Saratov, Smolensk, and Leningrad. Mining farms have been aggressively settling in these regions for some years.
Mining is also likely to be prohibited in Moscow, the Moscow Region, the Belgorod Region, and the Krasnodar Territory due to their history of energy scarcity.
It is worth noting that mining has become an excellent source of revenue as more Russians face growing unemployment.
The new mining legislation helps to clarify Russia’s stance on cryptocurrency, with different government institutions having contradictory views on how to approach the industry. President Vladimir Putin has earlier pushed the administration and the Central Bank to reach an agreement on cryptocurrencies.
The Bank of Russia initially supported a blanket ban on cryptocurrency, including mining. However, in the aftermath of rising international sanctions following the disastrous invasion of Ukraine, officials appear to have softened their stance.
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