The Bank of Russia and the Ministry of Finance Russia have approved a draft law to control crypto mining in the country. In addition to hydroelectric and nuclear power facilities, the government also wants to limit cryptocurrency mining to energy-rich areas.
According to RBC, Russia has agreed on a draft crypto mining law that will only allow mining in energy-rich regions, and should ban cryptocurrency mining in energy-scarce regions. Energy-rich regions are those with hydroelectric and nuclear power plants. https://t.co/GFQcMXdmRC
— Wu Blockchain (@WuBlockchain) September 29, 2022
It will also be prohibited by the central bank and the finance ministry to mine crypto currency in areas where electricity is unavailable.
The First Step Towards Law
Earlier this month, the Bank of Russia and the Ministry of Finance Russia agreed on a draft crypto mining legislation that will be implemented before the end of the year.
Russia draft crypto mining law to permit mining only in energy-rich regions.#web3 #crypto #nftsale
— CryptoBlockMetaverse (@CryptoBlockMeta) September 29, 2022
According to Anatoly Aksakov, chairman of the financial markets committee, the State Duma will soon receive the crypto mining law. Further, he believes that energy-demanding activities, such as cryptocurrency mining, should not be carried out in places without electricity. This will result in cryptocurrencies only being mined in areas that have hydroelectric and nuclear power plants.
Government-appointed experts specify the locations in Russia that are suitable for cryptocurrency mining and those that are not. During a recent interview with local media outlet RBC, cofounder of the ENCRY Foundation Roman Nekrasov said that cryptocurrency mining suits areas with nuclear power plants and hydroelectric power plants.
Hydroelectric power stations provide affordable energy in the Krasnoyarsk Territory and in the Irkutsk Region. Tver, Saratov, Smolensk, and Leningrad also have nuclear power reactors.
Russian Parliament Considers Imposing Fines on Crypto Mining by End of June #Bitcoin #Cryptocurrencies #Russia #Mining #Law #Government https://t.co/euOmcQnJhh
— BitcoinAgile (@bitcoinagile) June 10, 2019
Furthermore, crypto mining will be prohibited in inhabited areas like Moscow and industrial areas. In addition, cryptocurrency mining may be permitted in Karelia under certain conditions.
The Ministry of Finance and Bank of Russia recently agreed on a cross-border crypto settlement law. The government regards cryptocurrency as beneficial for cross-border transactions.