Russia allows cryptocurrency mining in areas with hydroelectricity and nuclear power

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2022-10-04 21:35:45

In preparation for the legalization of cryptocurrency mining, Russian officials suggested that it should be licensed in areas with excess energy and banned in areas where there is a shortage.

An expert from the crypto industry has marked the areas where the Moscow authorities are likely to allow mining and those that will likely ban the mining of digital currencies.

Russia Plans Suitable Areas For Cryptocurrency Mining And Where It Is Banned

Recently, the Central Bank of Russia and the country’s Ministry of Finance have agreed to regulate the law for cryptocurrency mining that will pass later this year. Lawmakers working to finalize the law have indicated that industrial activity should only be allowed in regions that can produce more electricity than it consumes.

One of the lawmakers, Chairman of the Parliament’s Financial Markets Committee – Anatoly Aksakov, also suggested that energy-intensive processes should be banned in areas facing power shortages. The deputy minister assured that the respective bill would be submitted to the Indian Duma in the near future, calling for regulation of mining and cryptocurrencies.

This is not the first time that the idea of ​​allowing digital currency to be minted in regions with a steady surplus in electricity production has been raised. A similar proposal was made by Russia’s Ministry of Economic Development in February, when it also proposed setting an “acceptable” electricity price for miners.

Roman Nekrasov, co-founder of the ENCRY Foundation, which represents IT companies providing services in the field of technological innovation and blockchain, shared with RBC Crypto his expectations about which regions of Russia are most likely to be. permission to organize cryptocurrency mining activities. He also listed places where miners would be “hard to welcome”.

He shared that there have been many licensed cryptocurrency miners for several years now. As in Irkutsk Oblast and Krasnoyarsk Krai, there are many hydroelectric plants, as well as the regions of Tver, Saratov, Smolensk and Leningrad, with their nuclear power plants.

Nekrasov explained that digital currency minting will likely be banned in the capital Moscow and nearby structures Moscow Oblast, Belgorod Oblast and Krasnodar Krai, which have always been short of energy. He also hopes to intensify the crackdown on illegal mining facilities in Dagestan. The Russian Republic is another region with insufficient electricity supply, where mining has become a popular source of income amid high unemployment.

The crypto industry expert also suggested that the Russian authorities may allow cryptocurrency mining in Karelia. However, this can happen under certain conditions such as requiring crypto mining businesses to support the construction of small hydroelectric plants, commented Roman Nekrasov. Karelia was listed among the most popular crypto mining destinations in Russia in research published in early 2022.

#Russia #cryptocurrency #mining #areas #hydroelectricity #nuclear #power

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