Breaking: Russia’s Authorities To Introduce Crypto Mining Law This Year

Russia’s Ministry of Finance and the Bank of Russia agree on a draft bill to regulate crypto mining in the country. The authorities aim to allow crypto mining in only energy-rich regions with hydroelectric and nuclear power plants. Also, the central bank and finance ministry will ban crypto mining in energy-scarce regions.

Russia to Introduce Crypto Mining Law

Russia’s Ministry of Finance and the Bank of Russia recently agreed on a draft crypto mining law to be adopted by the end of this year.

Anatoly Aksakov, Chairman of the Committee on Financial Markets of The State Duma, said the crypto mining bill will be presented in the State Duma in the near future. Moreover, he believes energy-intensive operations such as crypto mining are not suitable in energy-scarce areas. Thus, allowing crypto mining only in energy-rich regions with hydroelectric and nuclear power plants.

The Ministry of Economic Development in February supported the same opinion. The ministry earlier said crypto mining is only possible in regions with a steady surplus in electricity generation.

The government-appointed specialists listed suitable and unsuitable regions for crypto mining in Russia. Regions with hydroelectric and nuclear power plants are suitable for crypto mining, Roman Nekrasov, co-founder of the ENCRY Foundation, told local media RBC.

The Irkutsk Region and the Krasnoyarsk Territory offer cheap electricity from hydroelectric power plants. Also, the Tver, Saratov, Smolensk, and Leningrad regions provide stable electricity from nuclear power plants.

Furthermore, experts believe authorities will prohibit crypto mining in populated cities such as Moscow and industrial regions. Moreover, authorities may allow crypto mining in Karelia, but under special conditions.

Russia Agrees on Crypto Use for Cross-Border Settlement

Recently, the Ministry of Finance and the Bank of Russia also agreed on a cross-border crypto settlement bill. The authorities believe the use of cryptocurrencies in cross-border settlements will benefit the country.

Moreover, Russia looks to regulate crypto, while addressing concerns of illegal financing and money laundering. Meanwhile, Russia is experiencing pressure due to sanctions, resulting in less economic development and trade.