Is Crypto Mining Being Legalized by Federal Ministry in Russia?

10:46 am, Tue, 15 February 22

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Russia has been on the sidelines while many of its neighboring countries banned crypto. However, according to reports, the Russian government has been planning to regulate crypto in the country, instead of placing a complete crypto ban bill.

Crypto assets are quite prominent in the world and banning crypto-related operations and services can be an unbeneficial step.

Therefore, while the government in the country has been trying to devise crypto regulations, a federal ministry in Russia has made another proposal.

According to reports, the proposal has been proposed by the Ministry of Economic Development in Russia. The purpose of the proposal is to recognize crypto mining as a commercial activity. Introducing taxes on the realized profits of crypto mining is also part of the proposal.

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Details of Federal Ministry’s Proposal

The proposal made by the federal ministry in Russia is regarding the crypto mining industry. The ministry has highlighted the concept of crypto mining and has specified that mining operations should only be allowed in specific areas.

As per the proposal, areas that have a “sustainable surplus in electricity generation” are where crypto mining operations can be established.

The ministry has suggested that:

  • Fees charged for setting up mining farms and data centers in certain areas should be lowered.
  • The energy rates for such facilities should also be reduced.
  • A power use limit for mining by individuals should be established.

While some details of this proposal are yet to be specified, the proposed rules will eliminate the risks of insufficient power supply for:

  • Social facilities
  • Housing
  • Infrastructure in other parts of Russia

As mentioned earlier, there has been uncertainty regarding the regulation of crypto in the country. While different parts of the government are still discussing ways to regulate crypto, it has been reported that a joint crypto regulation bill by the government and central bank will be introduced this Friday.

What Should Crypto Investors Know?

The crypto market attracts the eye of a large audience as buying or trading digital assets is quite the buzz at the moment. Many crypto enthusiasts and analysts believe this to be the future of finance all over the world as the crypto assets have an undeniable value and significance.

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