The Bank of Russia and the Ministry of Finance of the Russian Federation (MiFin) have agreed that crypto mining should only be allowed in certain areas.
According to a new report by RBC-Crypto, Russian officials are preparing to legalize mining activities only in energy-rich regions and aim to ban the niche in energy-poor regions. The law is expected to be passed by the end of this year.
Energy-intensive areas only
The chairman of the parliamentary financial market committee, Anatoly Aksakov, reiterated the authorities’ stance and said the energy-intensive process should be banned in areas with power shortages. The deputy also announced that the law would be submitted to the State Duma.
The development follows a proposal by the Ministry of Economic Development, which wanted to enable crypto mining in areas with a stable power supply.
According to Roman Nekrasov, co-founder of the ENCRY Foundation, mining activities should be allowed in regions with hydroelectric and nuclear power plants. Irkutsk Oblast and Krasnoyarsk Krai are known to have hydroelectric power plants, while Tver, Saratov, Smolensk and Leningrad are home to nuclear power plants. These areas have been actively populated by mining operations for several years.
No mining activities will take place in historically energy-poor regions such as the capital Moscow and the adjacent Moscow region, the Belgorod region and the Krasnodar region.
Meanwhile, the expert also claimed that the prospecting of cryptocurrencies in Karelia could be allowed by the Russian authorities. However, this would happen under special conditions that would require mining operations to support the construction of small hydroelectric power plants.
Curtailment of illegal mining activities
Despite being the third largest crypto mining nation in the world according to Cambridge University Data, Russia proposed a blanket ban on domestic use and creation of all cryptocurrencies. The renewed push comes after several mixed signals and contrasting stances from the Russian authorities in their fight against international trade sanctions.
Soaring unemployment cases have prompted the country to resort to underground crypto mining. But the focus on eliminating illegal mining activities will continue. On the one hand, Nekrasov expects that action against mining facilities in Dagestan will intensify. Earlier this year, officials from Dagestan’s Interior Ministry and the Federal Security Service shut down two illegal crypto farms and seized more than 1,500 mining machines.
CryptoPotato earlier reported that Russia will adopt its native CBDC to dampen US hegemony over the global financial system.
Source: Crypto News Deutsch