Russia Agrees to Make Bitcoin Mining Legal in Energy-Prosperous Regions

Share IT

Key Takeaways:

  • Russian government agencies are negotiating a deal to make Bitcoin mining legal in areas with plenty of electricity.
  • An efficiency guideline for crypto mining in Russia has been developed by crypto researchers.

Russian authorities have reverted to focusing on legislative transparency, outlining requirements operators must follow, which will damage the country’s crypto mining industry.

Industrial activity should only be allowed in areas of the large country that have the capacity to produce more electricity than they require, according to lawmakers who are trying to finalize it.

It is predicted that the guidelines will help data center operators and developers give investors improved hardware uptime. A benchmark for effective and energy-efficient bitcoin mining in Russia is to be established.

A more scientific method, which uses computer modeling of pressures and speeds, is expected to be able to enhance the effectiveness of mechanical components for mining equipment.

An outline of a law governing cryptocurrency mining has been agreed upon by the Ministry of Finance and the Bank of Russia. The paper will be adopted during the autumn session, according to Alexei Moiseev, deputy minister of finance for Russia.

Anatoly Aksakov, the chairman of the Duma committee on the financial industry, also predicted that this law would soon be introduced in the State Duma.

It’s not a novel concept to limit the minting of digital currency to areas with consistent electricity generation surpluses.

Irkutsk and Krasnoyarsk Territory, Tver, Saratov, Smolensk, and Leningrad are a few of these areas with affordable electricity. Furthermore, given that they have been home to mining farms, locations with hydroelectric and nuclear power facilities are likely to enable mining. 

In an interview with RBC Crypto, Roman Nekrasov, co-founder of the ENCRY Foundation, which represents IT firms offering services in the blockchain and tech sectors, discussed his predictions for which Russian locations will be most likely to be permitted to host crypto mining activities.

According to Nekrasov, mining will likely be prohibited in Moscow, the Moscow Region, the Belgorod Region, and the Krasnodar Territory because these areas have historically had energy shortages.

Additionally, he is confident that investigations on illicit mining farms in Dagestan will increase in frequency due to the region’s energy need and the fact that mining has become a common source of income there in light of the country’s high unemployment rate.

This should also enable accurate ventilation system calibration, taking into account variables like humidity, season, location, and the precise location of a cryptocurrency mining unit.

The Bank of Russia initially supported a complete ban on cryptocurrency, including mining. However, in light of tougher international sanctions following the disastrous invasion of Ukraine, authorities seem to have changed their stance.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!