Friday, October 7, 2022

Russian Government Considers the Legalization of Crypto Mining

The crypto mining sector in the nation of Russia is set to receive a breath of fresh air following the government’s recent position to legalize cryptocurrency mining in the country. This information was made public on Saturday when Russia’s Deputy Minister for Energy- Evgeny Grabchak spoke on the state of crypto mining which according to him is presently in a state of legal vacuum.

The Deputy Minister noted that the fact that cryptocurrency mining falls under the watch of the Federal government as opposed to being controlled by the regional government is one major limiting factor for the sector.

Hence, having the Federal government let go of its rein on crypto mining, regional authorities would be able to properly plan and carve out mining sites within their territories based on their regional development blueprint.

This, according to him, would bring greater efficiency to the sector, as energy consumption for the mining facilities would henceforth be subject to regional caps and parameters. Adding to this, Grabchak is advocating that some form of certainty be placed on the crypto mining space which in Russia is yet to either be declared legal or otherwise.

Instead of allowing crypto mining to continue in its current free swing, pegging the sector to a fixed point in terms of its legality would help fast-track the development of certain regulatory frameworks which would further bolster the industry.

Cryptocurrency Continues to Enliven Russians

At a time when Russia seems to be in the black book of most global governments and brands, the cryptocurrency sector and blockchain technology firms continue to be a source of solace for the sanction-ridden nation.

With the service withdrawal of global payment giants such as Visa, MasterCard, and a chain of other companies, cryptocurrency exchange firms like Coinbase, Bittrex and Bitfinex have however pledged their unwavering commitment to crypto traders and users in the Russian nation.

It would be recalled that on March 4, Coinbase CEO, Brian Armstrong said that his company would not preemptively place a ban on all of its Russian users. Also, in a bid to ensure the continuation of global payments and collection, Bitfinex- a crypto exchange firm also mentioned that placing a blanket restriction on all its Russian users is not a decision under consideration.

Going ahead with such a decision would only be a sheer inhumane decision, Bitfinex said.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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