Russian Finance Ministry has set out to legalize Bitcoin mining in specific locations

Although the Finance Ministry and the Central Bank in Russia have opposing viewpoints on cryptocurrencies, the ministry wants to legalize cryptocurrency mining in specific areas of the country.
Russian Finance Ministry has set out to legalize Bitcoin mining in specific locations

The Russian government is working on a regulatory framework for cryptocurrencies, and a new plan for the crypto mining industry has been offered by a federal agency.

According to local news source Izvestia, Russia’s Ministry of Economic Development has agreed to a request to allow crypto mining in areas with a sustainable excess in electricity generation.

The ministry has proposed delivering lower-cost electricity to miners and data centres in selected Russian localities.

Power usage limits for crypto mining

The ministry also intends to establish a limit on how much power mining rigs can consume, as well as introduce higher energy tariffs to compensate for increased energy spending. However, the authorities have yet to establish a threshold amount for this.

The ministry went on to say that the new plans will eliminate the possibility of crypto mining activities causing power shortages in housing, social services, and infrastructure in other parts of the country.

The government also stated that it regards cryptocurrency mining as a commercial activity and that income from cryptocurrency mining will be subject to new taxes.

The Bank of Russia is against cryptocurrencies

The fresh ideas come as various sectors of the Russian government continue to debate how to regulate Bitcoin (BTC). While the finance ministry is pushing for the cryptocurrency to be allowed, Bank Of Russia Governor Elvira Nabiullina has taken a hard line against cryptocurrencies and is arguing for a complete prohibition.

The Bank of Russia is taking a different stance from the government, which publicly authorized the concept of crypto regulation on Feb. 8.

“Our position accords with the government’s position that cryptocurrencies should be regulated, not prohibited,” Anatoly Popov, deputy head of the executive board at Russia’s banking giant Sber, stated.

Effective regulation is required to allow citizens and organizations to lawfully buy cryptocurrencies while also considering AML [Anti-Money Laundering] procedures and taxation.”