A high-ranking representative of the Ministry of Finance in Moscow says it makes no sense to ban crypto mining in Russian households because it would be harder to restrict the activity. The top official also revealed that the department is currently finalizing regulations for the mining sector as part of Russia’s efforts to legalize the crypto space.
Russia prepares to legalize cryptocurrency mining
According to Alexey Yakovlev, Deputy Director of the Department of Financial Policy at the Ministry of Finance of Russia, there is no point in banning crypto mining at home as such a ban would be difficult to implement. He made this statement at a roundtable discussion dedicated to the legalization and regulation of the industry.
The ministry is now finalizing new provisions that will bring this crypto-related activity into the legal domain, Yakovlev announced during a video conference call quoted by crypto news outlet ForkLog. The intention of the Russian authorities is to emphasize ensuring that activities in the region are economically viable.
The government also wants to mitigate potential risks. Elaborating on that, the Minfin representative pointed to the dangers of money laundering and financing of terrorism. He also highlighted the need to guarantee the energy security of the Russian Federation.
Cryptocurrency mining in basements and garages has become a popular income source for many ordinary Russians, especially in areas like Irkutsk where household electricity rates start at just $0.01 per kWh. Electricity consumption there increased four-fold last year and officials believe the spike is largely due to mining hardware running in people’s homes and villas.
In December, the central government in Moscow allowed Russian regions to locally set electricity rates in residential areas. This will allow regional authorities and utility companies to levy higher tariffs for domestic consumption above certain limits.
Amid unprecedented Western sanctions, Russia is moving forward with efforts to regulate its crypto market, seeing an opportunity to employ crypto assets to restore its access to global finance. While its central bank has been a staunch opponent of the legalization of crypto-related activities, including mining, the finance ministry has made a push to regulate them under strict oversight.
In January, President Vladimir Putin urged both sides to resolve their differences, highlighting Russia’s competitive advantages as a bitcoin mining destination. There are increasing calls between authorities in Moscow and the energy-rich Russian regions to recognize mining as an entrepreneurial activity. This week, the Ministry of Energy insisted that the legal void in the sector should be filled “as quickly as possible”.
In February, the federal government approved a regulatory plan based on the Ministry of Finance concept. Soon after, the department introduced a new bill “On Digital Currency” designed to broadly regulate the crypto economy after the “On Digital Financial Assets” law, which came into force last January, covers only certain regulatory aspects. addressed to.
Do you expect Russia to legalize and regulate crypto mining as an economic activity soon? Tell us in the comments section below.
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