Russia Will Not Try to Ban Home Crypto Mining – It would be difficult to prohibit crypto mining in Russian homes, according to a high-ranking representative of the Ministry of Finance in Moscow.
As part of an attempt to legalize Russia’s crypto space, the top official also announced that the government is presently developing legislation for the mining sector.
According to Alexey Yakovlev, deputy director of the Financial Policy Department at Russia’s Ministry of Finance, attempting to prevent at-home crypto mining makes no sense because enforcing such a ban would be difficult. He made the remarks during a round table discussion on the industry’s legalization and regulation.
According to Yakovlev, who was mentioned by the crypto news outlet Forklog during a video conference call, the government is now developing new laws which would bring this crypto-related activity into the legal realm.
The Russian government intends to place emphasis on ensuring that activities in the industry are financially viable.
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The government also wants to keep the dangers to a minimum. The Minfin representative went on to explain the dangers of money laundering and terrorism financing. He also emphasized the importance of ensuring the Russian Federation’s energy security.
Cryptocurrency mining in garages and basements has become a popular source of income for several ordinary Russians, particularly in places like Irkutsk, where home power costs as little as $0.01 per kWh.
Last year, power consumption in the area jumped fourfold, with authorities blaming the growth on mining hardware installed in people’s houses and villas.
The Russian central government in Moscow allowed Russian districts to set their own electricity pricing in residential areas in December. This will enable local governments and utility corporations to impose higher charges on residential use that exceeds specific criteria.
In the face of unprecedented Western sanctions, Russia is moving on with measures to regulate its crypto market, seeing crypto assets as a way to reclaim access to global finance.
While the central bank has been a vocal opponent of crypto-related businesses, including mining, the Finance Ministry has led a campaign to regulate them under close supervision.
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President Vladimir Putin pushed the two parties to work out their disagreements in January, emphasizing Russia’s competitive advantages as a bitcoin mining destination.
Officials in Moscow and energy-rich Russian regions have been calling for mining to be recognized as a business activity.
The federal cabinet approved a regulation strategy based on the notion of the Finance Ministry in February. Shortly after, the department introduced a new bill called “On Digital Currency” to govern the crypto economy more fully because the law “On Digital Financial Assets,” which took effect in January, only addressed some regulatory problems.