Russia Might Soon Legalize Bitcoin Mining In Energy-Sufficient Areas

16.02.2022 11:31
by Nina Petrov
1 min read

Russia, known for strict crypto regulation, considers legalizing Bitcoin mining in areas with a significant energy surplus. 

The Ministry of Economic Development announced that there is a proposal that in those regions, mining should get the status of commercial activity, and be taxed accordingly.

The proposal is designed to enable mining and support the industry without jeopardising the country’s power supply, as it happened in Kazakhstan. 

Additionally, the state announced lower electricity rates for mining farms in authorized regions. However, if certain energy consumption thresholds are surpassed, the prices would rise. The power consumption limits are yet to be defined.

The Government’s new steps towards regulating crypto weren’t accepted well by Russia’s central bank, which has been lobbying against crypto, suggesting high risks and volatility of the market as the main reasons for such a stance.

At the moment, Russia is the third most popular mining destination, after the U.S. and Kazakhstan.

Author

  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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