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Russian Ministry of Energy Calls for Legalization of Crypto Mining

The Russian Ministry of Energy Calls for Legalization of Crypto Mining. According to the Russian Deputy Minister of Energy Evgeniy Grabchak, ” The authorized vacuum in the crypto mining market should be filled “as quickly as practical,”.  The government source also suggested that rather than regulating crypto farms at the federal level, regional quotas be established.

Russian Ministry of Energy Calls for Legalization of Crypto Mining

Image Source: Asia Token Fund

Evgeniy Grabchak, speaking at Russia’s first national meeting of licensed bitcoin miners, held recently in Irkutsk, advocated that cryptocurrency mining be controlled as soon as possible. With electricity costs starting at $0.01 per kWh, the Siberian region has been dubbed “Russia’s mining capital.” Since China tightened down on the practice last May, coin minting in the region has surged. According to Tass, Grabchak elaborated:

Authorities in Irkutsk and elsewhere have previously declared that if the enterprise is recognized as a business venture, as a rising number of officers have recommended, they are willing to provide websites for commercial cryptocurrency extraction.

Regulating this industry and setting transparent rules of the game is difficult because of the legal void. It has to be eliminated as soon as possible… We don’t have any other options under the current circumstance. Legal regulation that includes the concept of mining into the regulatory framework is required.

Chairman of the legislative Financial Market Committee Anatoly Aksakov, Deputy Prime Minister Alexander Novak, and Governor of Irkutsk Oblast Igor Kobzev have all made statements in this direction.

In the face of growing western sanctions over the invasion of Ukraine, Russia has seen cryptocurrencies as a way to regain access to international funds, and Moscow is considering accepting bitcoin for its energy exports. Despite the Bank of Russia’s adamant opposition to the legalization of a range of crypto activities, including mining, government efforts to control the country’s crypto market have restarted.

The majority of institutions have backed the Finance Ministry’s stance, which favors regulation under close supervision over a total prohibition. The division presented a whole new invoice titled “On Digital Currency” in February. President Vladimir Putin pushed the federal government and the central bank to overcome their differences in January, highlighting Russia’s aggressive advantages as a mining vacation site.

Do you think Russia will soon regulate the crypto mining industry? Let us know in the comments section.

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Also read: MetaMask has announced an upgrade that enables iPhone and Apple Pay customers to purchase cryptocurrency using a credit card

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