Home News Russian Ministry wants to legalize Bitcoin mining in specific areas

Russian Ministry wants to legalize Bitcoin mining in specific areas

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The Russian government continues to work out a legislative framework for digital assets. However, another suggestion for the crypto mining business has been issued by a federal agency.

According to local news source Izvestia, Russia’s Ministry of Economic Development has given its approval to the concept of crypto mining regulation. Proposing to allow mining activities in locations with a “sustainable surplus in electricity generation.”

The ministry proposed lower costs for establishing mining farms and data centres in selected Russian regions. As well as lower energy rates for such facilities, as part of the plan.

The ministry also wants to set a power usage restriction for individual miners. And is allegedly considering raising energy charges to compensate for increased spending. According to the article, the authorities has not yet established a threshold amount.

According to the ministry, the newly suggested guidelines would eliminate the possibility of insufficient power supply in other parts of the country for housing, social services, and infrastructure.

In addition, the government said to have considered classifying cryptocurrency mining as a commercial activity. As well as imposing taxes on cryptocurrency mining income.

Russian region struggles to keep up with Bitcoin mining energy demands

Different sectors of the government disagree on how to control Bitcoin

The current suggestion comes amid continuous ambiguity in Russia regarding cryptocurrency regulation. With different sectors of the government disagreeing on how to control Bitcoin (BTC).

As previously reported, Russia’s finance ministry has pushed for regulation of the cryptocurrency business. While the Bank of Russia has been adamant about banning crypto transactions, citing investor protection concerns. On February 8, after the Russian government publicly accepted the notion of crypto regulation, Bank of Russia Governor Elvira Nabiullina stated that the bank did not endorse the government’s decision and would continue to fight crypto adoption in Russia.

By this Friday, the government and the central bank scheduled to introduce a unified crypto regulatory bill.

Supporting regulating rather than prohibiting the industry

Recently, a number of significant state-sponsored financial institutions in Russia have advocated the concept of regulating cryptocurrency in the nation. Sber’s vice chairman of the executive board, Anatoly Popov, has reportedly stated that the corporation supports regulating rather than prohibiting the industry.

“We agree with the government that cryptocurrencies should be regulated rather than outright prohibited.” Effective regulation is required to allow citizens and organisations to lawfully buy cryptocurrencies while also considering AML [Anti-Money Laundering] systems and taxation,” he said.

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