According to Evgeniy Grabchak, Russian Deputy Minister for Energy, the legal gap in crypto mining must be filled “as quickly as possible.” A government official called for regional quotas to be introduced for crypto farms, rather than regulating them at the federal level.
Russian Official Proposes Regional Energy Quotas to Crypto Miners
Evgeniy Grabchak, a Russian national conference of legal cryptocurrency miners, stressed that cryptocurrency mining must be regulated quickly. Siberian Oblast, which has electricity rates starting at $0.01 per kWh, was dubbed the “mining capital of Russia” after coin minting in the region soared following China’s crackdown on the industry. Grabchak, quoted by Tass, elaborated:
It is difficult to regulate the field and create transparent rules. It must be removed as soon as possible… There are no other options. It is necessary to implement the legal regulation that incorporates the mining concept into the regulatory framework.
Russia’s deputy minister for energy suggested that it would be easier to identify sites for mining facilities and available energy capacity at the regional level than at the federal level. He said that these quotas should be in line with the Russian regions’ development plans, other industries, as well as the energy system.
Irkutsk authorities and others have indicated their willingness to provide sites for industrial extraction of cryptocurrency. This is if the activity is considered entrepreneurial. A growing number of officials has been suggesting. The chairman of the parliamentary Financial Market Committee Anatoly Saksakov and Igor Kobzev, Governor of Irkutsk Oblast have made calls in this direction.
Russia saw an opportunity to use cryptocurrency to regain global financial access, and Moscow is looking at accepting Bitcoin for energy exports, despite mounting western sanctions. Despite strong opposition from the Bank of Russia to legalizing crypto activities including mining, government efforts have resumed to regulate the country’s crypto space.
The majority of institutions are aligned with Finance Ministry’s approach, which favors strict supervision over blanket bans. In February, the department presented a bill “On Digital Currency.” In January President Vladimir Putin asked the government to resolve their differences. also highlighted Russia’s competitive advantages as an mining destination.