Russian officials are preparing to allow cryptocurrency mining in excess energy areas, but it should not be allowed in the ones that suffer from deficits. Recently, a crypto industry expert identified which regions Moscow would allow the mining of cryptocurrency and where it might ban this activity.
Expert lists Russian regions most suitable for crypto mining and those expecting ban
Recently, the Central Bank of Russia (MOF) and Ministry of Finance agreed to legislation that would regulate cryptocurrency mining. This law should be passed by the end of the year. It is believed that only those parts of the country with the ability to produce electricity more than their needs should allow industrial activity.
Anatoly Aksakov (chairman of the Financial Market Committee in Parliament) also stated that energy-intensive processes should not be allowed to take place in areas with power scarcity. In a statement, the deputy promised that the relevant bill would soon be filed at the State Duma. He also requested simultaneous regulation for mining and cryptocurrency.
It isn’t new to suggest that digital coins can only be authorized in areas with an ongoing surplus of electricity generation. A proposal in the same direction was made by the Russian Ministry of Economic Development in February, when the department also suggested introducing “acceptable” electricity rates for miners.
Roman Nekrasov co-founder of ENCRY Foundation which represents IT businesses providing services in tech innovation and blockchain, shared his views with RBC Crypto on the most likely Russian areas to allow crypto mining operations. He listed the areas where miners are unlikely to be welcomed.
He said that mining will be allowed in areas with both hydroelectric and nuclear power stations. These regions have already been home to cryptocurrency farms for many years. Irkutsk Oblast is one of these, while Krasnoyarsk Krai has many nuclear power plants.
Nekrasov stated that the minting and circulation of digital currency will likely be prohibited in Moscow, the Moscow Oblast and Belgorod Oblast. These areas have been historically energy-deficient. Nekrasov also said that he expects Dagestan’s crackdown on illegal mines to increase. In Russia, there is also insufficient electricity. This has led to mining becoming a highly lucrative source of income for high unemployment.
Expert in crypto-industry believes that Russian authorities might allow Karelia to extract cryptocurrencies. Roman Nekrasov said that it could be done under specific conditions. For example, the government might require mining firms to provide financial support for small hydropower plants. In a study published earlier in the year, Karelia was ranked amongst Russia’s most popular crypto-mining destinations.
What do you think? Will Russia allow mining to be done only in energy-rich countries? Please comment below to share your views.
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