Russia is set to legalize crypto mining. But officials say only regions with excess energy should be allowed to do so. Mining should not be done in other areas with energy deficits, according to them. A cryptocurrency industry expert recently listed the “allowed” and “prohibited” regions. This regulation of cryptocurrency mining should enter into force by the end of the year.
The most favorable regions for crypto mining
The Russian Central Bank and Ministry of Finance have agreed on legislation to regulate crypto mining. According to lawmakers working to finalize it, this activity should only be allowed in specific regions. He speaks in particular of the regions where the production of electricity is greater than their need. This is how the chairman of the parliamentary committee on financial markets, Anatoly Aksakov, made a statement. According to him, regions facing power shortages should not engage in mining activities.
According to Roman Nekrasov, regions with lots of hydropower plants are the most suitable for crypto mining. The co-founder of the ENCRY Foundation cited Irkutsk Oblast and Krasnoyarsk Krai among these power plants. But he also cited those with nuclear power plants such as Tver, Saratov, Smolensk and Leningrad. He also thinks that the Russian authorities could allow cryptocurrency mining in Karelia under certain conditions. For example, requiring mining companies to support the construction of small hydroelectric plants. According to a recent study, Karelia is among the most popular destinations for crypto mining in Russia.
Regions “forbidden” to mining
Nekrasov also told RBC that the “ minting of crypto should be banned in Moscow. He also cited the adjacent regions of Moscow Oblast, Krasnodar Krai as well as Belgorod Oblast. They have always been lacking in energy, according to the words of this expert. He also believes that the crackdown on illegal mining facilities in Dagestan must be intensified. The supply of electricity is, in fact, insufficient. Which does not align with the increase in crypto mining activities. This “new” activity has indeed spread as a popular source of income in the face of high unemployment.
This idea of allowing digital coin mining only in areas with excess electricity production is not new. The Russian Ministry of Economic Development already made a similar proposal in February. At that time, the department had suggested the introduction of “acceptable” electricity tariffs for miners.
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