Russia Crypto Mining

The Russian Ministry of Finance and the Central Bank of Russia have reached an agreement on proposed legislation to control cryptocurrency mining. The government’s goal is to limit crypto mining to areas with abundant renewable energy sources like hydroelectric and nuclear power facilities. Coin mining will be outlawed by the central bank and the finance ministry in areas where there is a shortage of electricity.

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Russian Legislation on Cryptocurrency Mining

It was recently announced that a draught crypto mining law had been agreed upon by the Russian Ministry of Finance and the Bank of Russia, and that it will likely be adopted before the end of 2018.

In the near future, the State Duma will see the introduction of the cryptocurrency mining bill, as promised by Anatoly Aksakov, chairman of the State Duma’s Committee on Financial Markets. Moreover, he thinks that crypto mining and other energy-intensive activities are inappropriate for regions with limited access to electricity. This means that crypto mining should be restricted to areas with plenty of readily available renewable energy sources like hydroelectric and nuclear power.

That view was backed in February by the Ministry of Economic Development. The government has previously stated that crypto mining is only viable in areas where there is a consistent excess in electricity generation.

The government experts mapped out which areas of Russia would be optimal for cryptocurrency mining and which would not. In an interview with RBC, Roman Nekrasov, co-founder of the ENCRY Foundation, discussed how areas with access to hydroelectric and nuclear power plants are optimal for cryptocurrency mining.

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The regions of Irkutsk and Krasnoyarsk provide low-cost electricity thanks to their abundance of hydroelectric power facilities. Also, nuclear power facilities in the areas surrounding Tver, Saratov, Smolensk, and Leningrad ensure a constant supply of electricity throughout these cities.

Experts also anticipate that authorities in heavily populated areas, such as Moscow, and industrial zones would outright ban cryptocurrency mining. The Karelian government is considering allowing cryptocurrency mining under certain circumstances.

Russia Approves the Use of Cryptocurrency in International Transactions

Not too long ago, the Russian government’s Ministry of Finance and Central Bank settled on a law to legalise international cryptocurrency transactions. It is the official opinion of the powers that be that utilising cryptocurrency in international transactions will be advantageous to the nation.

Russia wants to regulate cryptocurrencies to combat money laundering and other criminal activities. Meanwhile, sanctions are putting a damper on Russia’s economy, leading to fewer opportunities for growth and fewer goods traded.

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By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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