The Russian Finance Ministry has stated that an upcoming bill to regulate cryptocurrencies will pay “special attention” to mining, citing the country’s great potential for expanding the activity.
The bill which was presented to the government in February is anticipated to be finalized soon.
The remarks follow a series of requests from Russian officials to promote the adoption of cryptocurrency and relieve the pressure of strict economic sanctions. The United States and its allies have barred Russia from most of the global financial system over its invasion of Ukraine.
As a result of the decision, inflation in the country skyrocketed, and the ruble plummeted.
Mining, a point of emphasis for Russian Ministers
The proposed bill in Russia still intends to prohibit the use of cryptocurrency as a payment method. However, it will create a comprehensive regulatory framework for investing in the space and support activities like mining.
While the finance ministry looked to agree on the benefits of industrialized crypto mining, there appeared to be some disagreement on whether people should be permitted to mine from their homes.
We believe that it is necessary to concentrate on the development of industrial mining, but it probably does not make sense to ban household mining. In the near future, we will finalize our bill, which is already on the site of the government apparatus, and we will pay special attention to mining.
Alexei Yakovlev, deputy director of the Finance Ministry’s financial policy department.Yakovlev made the remarks during a panel on crypto mining in Russia, news agency 1Prime reported. He also stated that the proposed crypto bill will seek to strike a balance by maximizing economic feasibility while reducing the risks of money laundering and other illicit activities in the field.
Russia is a cryptocurrency hub
Before the invasion of Ukraine, Russia was on its way to becoming a crypto powerhouse. The country’s substantial energy resources, combined with its cold climate make it an ideal location for cryptocurrency mining.
Russian crypto usage had also risen in recent years with a pre-war number indicating that Russians possessed 12% of the world’s total crypto or roughly $240 billion.
However, given that economic sanctions have prevented Moscow from importing key technological components for the mining infrastructure, it’s unclear how the country plans to become a mining hub in the current circumstances. The Russian central bank has also repeatedly advocated for a total ban on cryptocurrency.
