Russian Ministry of Finance and the Bank of Russia are hammering out a draft bill regulating crypto mining. Crypto mining will be feasible only in energy-rich regions with abundant hydroelectric and nuclear power plants. The central bank and finance ministry will ensure that crypto mining will not occur in locations where energy is a premium and scarce.
Russia to Announce Crypto Mining Law
The Ministry of Finance and the Bank of Russia’s draft bill for Crypto Mining Law will become effective by the end of the year.
Russia’s Ministry of Finance and the Bank of Russia recently agreed on a draft crypto mining law to be adopted by the end of this year. Chairman of the Committee on Financial Markets of The State Duma, Anatoly Aksakov, said that the bill would be tabled in the State Duma shortly. He added that since crypto mining is an energy-intensive process, it will strive only in locations where energy is abundant and clean. He emphasized that crypto mining will be allowed in regions with abundant hydel power and nuclear power plants.
The Irkutsk Region and the Krasnoyarsk Territory offer cheap and abundant energy from hydel power plants, which are greener and renewable. Additionally, regions like the Tver, Saratov, Smolensk, and Leningrad provide cheap and stable electricity from nuclear power plants. Crypto Mining Law plans to forbid crypto mining in populated cities such as Moscow and industrial regions.
Russia Bats For Crypto Use for Cross-Border Settlement
Ministry of Finance and the Bank of Russia have also agreed on a cross-border crypto settlement bill. Such an arrangement will benefit the nation immensely. Russia also wants to regulate crypto because crypto assets often become a conduit for laundering money obtained from illegal activities like drug peddling and arms smuggling. Russia is presently under sanctions due to its actions in Ukraine.