Russian Official Advocates Legalization of Bitcoin Mining
Godfrey Benjamin Mar 29, 2022 02:40
In a dramatic twist, the Russian Deputy Minister of Energy Evgeny Grabchak is pushing for the regulation of Bitcoin mining given the current realities in the country.
In a dramatic twist, the Russian Deputy Minister of Energy Evgeny Grabchak is pushing for the regulation of Bitcoin (BTC) mining, given the current realities in the country.
As reported by the Russian News Agency, the deputy minister wants a legal framework to be floated as soon as possible with advocacy for the mining activities to be controlled at the regional level rather than by Federal authorities.
"The legal vacuum makes it difficult to regulate this area and set clear rules of the game. This legal vacuum needs to be [eliminated] as soon as possible. If we want somehow to get along with this activity, and we have no other options in the current reality, we must introduce legal regulation, adding the concept of mining to the regulatory framework," Grabchak said.
Earlier this year, the Russian government through the Bank of Russia (BOR) was so serious about banning Bitcoin and all associated transactions, including mining. With major tech and oligarchs in the country opposing the ban move, the focus now shifted predominantly to Bitcoin mining with the push gaining ground even amongst the regulators.
However, the country’s invasion of Ukraine has changed the narrative and with lots of financial sanctions being imposed on Russia, solace is now being sought in Bitcoin to complete international transactions. Per the report by the Russian News Agency, Grabchak noted that it would be more efficient to determine sites for mining and to free energy capacities for miners at the regional level, and not at the federal level, and this needs to be regulated with regional development plans.
The mining adventure of the Russian economy might prove to be beneficial for the broader digital currency ecosystem, however, Western regulators are exploring avenues to block the country’s attempts to bypass sanctions with the digital currency embrace across the board.
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