The Ministry of Economic Development has proposed a specific regulatory framework to legally mine crypto in Russia.
Russia has been struggling to get past the hurdles of crypto regulation, with some institutions opposing the idea of digital assets becoming part of the economy. However, after the President of Russia Vladimir Putin had shown support for crypto asset mining, other government authorities seem to be also falling in line.
According to a recent report, the regulatory measures have already been approved by the Economy Ministry of Russia, with discussions going on about mining in areas with an electricity surplus.
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With that being said, the ministry suggests limiting the power usage for mining operations, but with lower expenses to establish and operate crypto mining facilities. This is done in order to conserve energy in populated areas, and reduce the chance of power outages that recently happened in the Irkutsk Oblast due to crypto mining.
According to the news post, the Ministry of Economic Development proposes to license crypto mining so that it is properly taxed and regulated by the government of Russia.
It is still uncertain whether this proposal will take off any time soon due to the ongoing battles between government institutions in Russia, especially the Central Bank.
However, based on earlier reports, the majority of Russian authorities were in favor of issuing a particular regulatory framework on cryptocurrencies so they can be operational within the region.
Likewise, there was a report that Russians hold 12% of all circulating crypto assets, reaching almost $220 billion in total.
Even large banking institutions in Russia like Sberbank were in favor of regulating crypto assets rather than shying away from the idea, especially after launching its first ETF in the region.
