Russia to legalize crypto mining in specific locations with “sustainable surplus in electricity generation”

Yet another proposal has been issued addressing the crypto mining industry as the government of Russia continues to hammer out a regulatory system for digital assets.

According to local news Izvestia, Russia’s Ministry of Economic Development has given its approval to the concept of crypto mining regulation, proposing to allow crypto mining activities in locations with a “sustainable surplus in electricity generation.”

The ministry proposed lower fees for constructing mining farms and data centers in selected Russian regions, as well as lower energy rates for such facilities, as part of the plan.

The ministry also wants to set a power demand restriction for individual miners and is reportedly considering raising energy charges to compensate for increased spending. According to the report, the authorities have not yet established a threshold amount.

According to the ministry, the newly suggested guidelines would eliminate the possibility of poor power supply in other parts of the country for housing, social facilities, and infrastructure.

In addition, the Central Bank, which was previously adamant on banning crypto mining, is said to have considered classifying cryptocurrency mining as a commercial activity and imposing taxes on crypto mining earnings.

Uncertainty clouds around crypto regulation in Russia

The current proposal comes amid continuous uncertainty in Russia about cryptocurrency regulation, with different factions of the government disagreeing over how to control Bitcoin (BTC).

As previously reported, Russia’s finance ministry has pushed for regulation of the cryptocurrency industry, while the Russian central bank has pushed for a ban on crypto transactions, citing investor protection concerns. On Feb. 8, after the Russian government publicly accepted the notion of crypto regulation, Bank of Russia governor Elvira Nabiullina stated that the bank did not endorse the government’s decision and will continue to fight crypto adoption in Russia.

As TheCoinRise reported, the government and the central bank plan to introduce a combined regulatory bill to classify crypto as an “analogue of currencies” on Friday.