Russia Will Not Try to Ban Home Crypto Mining, Finance Ministry Official Indicates – Mining Bitcoin News

Moscow’s Ministry of Finance top-ranking official stated that it is not in the best interests of Russian citizens to prohibit crypto mining. It would prove difficult to regulate the activity. The top official also revealed that the department is currently finalizing regulations for the mining sector as part of efforts to legalize Russia’s crypto space.

Russia Prepares for Legalization of Cryptocurrency Mining

Alexey Yankovlev, the deputy director of Financial Policy Department of the Ministry of Finance of Russia, said that it makes no sense to attempt to prevent crypto-mining at home. It would not be easy to enforce such a ban. At a round table meeting, he made this statement.

Yakovlev stated that new provisions are being finalized by the ministry to allow crypto-related activities to be legalized. He was quoted in a videoconference call. Russian authorities will place emphasis on economic feasibility of activities in this sector.

Also, the government wants to limit potential risk. The Minfin representative emphasized the threat of terrorist financing and money laundering. He also stressed the importance of ensuring the Russian Federation’s energy security.

Many ordinary Russians have discovered that cryptocurrency mining is a great way to earn an income, particularly in Irkutsk and other regions where electricity rates are as low at $0.01/kWh. Power consumption there increased four times last year and authorities believe the spike is largely due to mining hardware running in people’s homes and villas.

Moscow’s central government allowed Russian regions to decide electricity rates within their local areas in December. Regional authorities and utilities companies will now be able to increase household consumption above certain thresholds by introducing higher tariffs.

Russia continues to fight western sanctions and is trying to regulate the crypto market. It sees an opportunity to use crypto assets as a way to restore access to international finances. Although the central bank of Russia has opposed the legalization and mining of cryptocurrency-related activities including, its Finance Ministry led the push for strict regulation.

In January, President Vladimir Putin urged the two sides to resolve their differences, highlighting Russia’s competitive advantages as a bitcoin mining destination. There have been increasing calls from officials in Moscow, and the energy-rich Russian regions for mining to be recognized as an entrepreneurial activity. This week, the Ministry of Energy insisted that the legal vacuum in the sector must be filled “as soon as possible.”

In February, the federal government approved a regulatory plan based on the Finance Ministry’s concept. Shortly after that, the department submitted a new bill “On Digital Currency” designed to comprehensively regulate the crypto economy after the law “On Digital Financial Assets,” which went into force last January, addressed only some regulatory aspects.

Are you optimistic that Russia will soon allow crypto mining to be legalized and regulated as an economic activity Comment below.

Lubomir Tatsev

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.