Russia Will Not Try to Ban Home Crypto Mining, Finance Ministry Official Indicates – Mining Bitcoin News

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A senior representative of the Ministry of Finance in Moscow sees no point in banning crypto mining in Russian households, as it would be difficult to restrict activity. The top official also revealed that the department is currently finalizing regulations for the mining sector as part of efforts to legalize Russia’s crypto space.

Russia Prepares to Legitimate Cryptamine Mining

Trying to ban in-house crypto mining does not make sense, as it would be difficult to impose such a ban, according to Alexey Yakovlev, deputy director of financial policy of the Russian Ministry of Finance. He made the statement at a round table discussion dedicated to the legalization and regulation of the industry.

The ministry is now finalizing new provisions that would bring this crypto-related activity into the legal field, Yakovlev announced during a video conference, quoted by the crypto news site Forklog. Russian authorities intend to emphasize ensuring that activities in the sector are economically viable.

The government also wants to minimize the potential risks. Going deeper, Minfin’s representative pointed to the threats of money laundering and terrorist financing. He also stressed the need to ensure the energy security of the Russian Federation.

Cryptocurrency mining in basements and garages has become a popular source of income for many ordinary Russians, especially in regions such as Irkutsk, where domestic electricity prices start at just $ 0.01 per kWh. Electricity consumption there has quadrupled last year and authorities believe the spike is largely due to mining hardware operating in people’s homes and villas.

In December, the central government in Moscow allowed Russian regions to determine electricity rates in residential areas locally. This will allow regional authorities and utilities to introduce higher tariffs for domestic consumption exceeding certain thresholds.

Amid unprecedented Western sanctions, Russia is trying to regulate its crypto market, seeing an opportunity to use crypto assets to restore its access to global finance. While its central bank has been a staunch opponent of the legalization of crypto-related activities, including mining, the Ministry of Finance has led a push to regulate them under strict supervision.

In January, President Vladimir Putin urged the two sides to resolve their differences, highlighting Russia’s competitive advantages as a bitcoin mining destination. Calls have increased among officials in Moscow and energy-rich Russian regions to recognize mining as a business activity. This week, the Ministry of Energy insisted that the legal vacuum in the sector should be filled “as soon as possible.”

In February, the federal government approved a regulatory plan based on the Ministry of Finance’s concept. Shortly afterwards, the department introduced a new “Digital Currency” bill designed to comprehensively regulate the crypto economy after the “Digital Financial Assets” law, which came into force last January, addressed only some regulatory aspects.

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Do you expect Russia to soon legalize and regulate crypto mining as an economic activity? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is what I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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