Russian Ministry of Energy Calls for Urgent Legalization of Crypto Mining   

shutterstock 707316553

The legal vacuum in the crypto mining sector must be filled “as soon as possible,” according to a statement by Russian Deputy Minister of Energy Evgeniy Grabchak. The government official also called for introducing regional quotas for crypto farms instead of regulating their business at the federal level.

Russian Official Proposes Regional Energy Quotas for Crypto Miners

Cryptocurrency mining needs to be regulated soon, Evgeniy Grabchak insisted during Russia’s first national conference of legal bitcoin miners, held recently in Irkutsk. The Siberian oblast, where electricity rates start at just $0.01 per kWh, has been dubbed “the mining capital of Russia” as coin minting in the region spiked after China cracked down on the industry last May. Quoted by Tass, Grabchak elaborated:

The legal vacuum makes it difficult to regulate this field and establish transparent rules of the game. It needs to be eliminated as soon as possible… We have no other options in the current reality. The legal regulation, fitting the concept of mining into the regulatory framework must be implemented.

Russia’s deputy minister of energy further suggested that it would be more expedient to determine sites for mining facilities and the available energy capacities at the regional instead of federal level. These quotas must be in compliance with the development plans of the Russian regions, other industries, and the energy system, he added.

Authorities in Irkutsk and elsewhere have previously stated their readiness to provide sites for the industrial extraction of cryptocurrencies, if the business is recognized as an entrepreneurial activity as a growing number of officials have been suggesting. Calls in that direction have been issued by the chairman of the parliamentary Financial Market Committee, Anatoly Aksakov, Deputy Prime Minister Alexander Novak, and the Governor of Irkutsk Oblast, Igor Kobzev.

Amid mounting western sanctions over the invasion of Ukraine, Russia has seen an opportunity to use cryptocurrencies to regain access to global finances, while Moscow is considering accepting bitcoin for its energy exports. Despite the strong opposition of the Bank of Russia to legalizing a range of crypto activities, including mining, government efforts to regulate the country’s crypto space have resumed.

Most institutions have sided with the Finance Ministry’s approach which favors regulation under strict oversight, over a blanket ban. In February, the department submitted a new bill “On Digital Currency.” In January, President Vladimir Putin urged the government and the central bank to resolve their differences and highlighted Russia’s competitive advantages as a mining destination.

Tags in this story
Bitcoin, Bitcoin Miners, Bitcoin mining, Conference, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deputy minister, Electricity, Energy, energy ministry, legalization, Miners, mining, quotas, regions, Regulation, Regulations, Russia, russian

Do you expect Russia to regulate its crypto mining sector soon? Tell us in the comments section below.

5D400B11 D5DE 4922 B4F4 0F7229C37672
Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer