Cryptocurrency mining should only be permitted in specified locations, according to an agreement between the Bank of Russia and the Russian Federation’s Ministry of Finance (MiFin).
In a recent report, RBC-Crypto stated that Russian officials are ready to legalize mining only in areas with abundant energy supplies and to outlaw it in areas with limited energy availability. By the year’s end, the law ought to be put into effect.
Anatoly Aksakov, chairman of the parliamentary Financial Market Committee, reaffirmed the government’s position by stating that the energy-intensive practice had to be outlawed in places with power shortages. The law will be brought to the State Duma, the deputy also disclosed.
The development is a result of a Ministry of Economic Development proposal to permit cryptocurrency mining in places with reliable power supplies.
Crypto mining situation in the nation
The ENCRY Foundation’s co-founder, Roman Nekrasov, claims that areas with hydroelectric and nuclear power plants will permit mining activity. It is important to note hat Hydroelectric power plants exists mainly in Irkutsk Oblast and Krasnoyarsk Krai, whereas nuclear power plants can be found in Tver, Saratov, Smolensk, and Leningrad. Miners have been actively residing in these places for a number of years.
Mining operations will not be permitted in areas that have historically had inadequate energy supplies, such as the Russian capital Moscow and the nearby Belgorod Oblast, Moscow Oblast, and Krasnodar Krai.
The expert also said that the Russian government might permit cryptocurrency mining in Karelia. However, this would take place only under extraordinary situations that would necessitate mining farms supporting the development of modest hydropower plants.
A similar suggestion came in February this year when Russia’s Ministry of Economic Development proposed allowing crypto mining activities in areas with a “sustainable surplus in electricity generation.”
The country has turned to underground crypto mining due to rising unemployment rates. However, efforts to stop unlawful activities will remain a priority.