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Bitcoin Mining Could Soon be Legal in Certain Areas in Russia

A federal ministry has presented another recommendation addressing the crypto mining business, as the Russian government continues to hammer out a regulatory system for digital assets. According to local news source Izvestia, Russia’s Ministry of Economic Development has approved the idea of crypto mining regulation in the nation, proposing to allow mining activities in locations with “sustainable excess in power production.”

The ministry proposed cheaper costs for establishing mining farms and data centers in selected Russian regions, as well as lower energy prices for such facilities, as part of the plan. The government also intends to set a power consumption restriction for each miners, allegedly suggesting higher energy prices in exchange for larger energy expenditure. According to the article, the authorities have yet to establish a threshold amount for this.

The latest suggested standards, according to the ministry, would eliminate the possibility of inadequate power supply for homes, social institutions, and infrastructure in other parts of the nation. In addition, the ministry is said to have advocated recognizing cryptocurrency mining as a business activity and imposing taxes on cryptocurrency mining revenues.

The current suggestion comes amid continuous ambiguity in Russia about cryptocurrency legislation, with various sectors of the government disagreeing on how to control Bitcoin (BTC).

As previously reported, Russia’s finance ministry has pushed for regulation of the cryptocurrency business, while the Russian central bank has pushed for a ban on crypto transactions, mentioning investor safety concerns. On February 8, when the Russian government publicly accepted the notion of crypto regulation, Bank of Russia governor Elvira Nabiullina said that the bank did not endorse the state’s policy and will vigorously oppose cryptocurrency usage in Russia.

By this Friday, the govt and the central bank are scheduled to propose an unified cryptocurrency regulatory law. Recently, a number of significant state-sponsored financial institutions in Russia have advocated the concept of regulating cryptocurrency in the nation.

Sber’s vice chairman of the executive board, Anatoly Popov, has allegedly said that the corporation supports regulating rather than prohibiting the sector. “We agree with the government that cryptos should be governed rather than outright prohibited. Effective legislation is required to enable people and companies to lawfully buy cryptocurrencies while also taking into consideration anti-money laundering (AML) systems and taxes.”

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