Russian Energy Ministry Wants Legal Crypto Mining
Russia’s Ministry of Energy is pushing for the legalization of industrial crypto mining, and wants lawmakers to pass a long-awaited mining law.
Russian Ministry Proposes ‘Crypto Ban’ – But Miners & Stablecoin Issuers May Be Safe
The Russian finance ministry has reportedly proposed banning the circulation of crypto in the nation, but wants to make exceptions for stablecoin issuers and crypto miners.
Per Frank Media, sources “familiar with the matter” told the news agency Interfax that the proposals could be bundled with the much-delayed crypto mining legalization bill, and have already been drafted.
The ministry wants to press ahead with legislation that would officially allow industrial miners to operate in the country.
Russia’s crypto mining sector is already highly advanced, due mainly to the nation’s rich energy resources and cold winter climate.
But mining is not currently recognized as a legal form of business, nor can it be taxed accordingly.
The ministry wants to rectify this.
And it hopes the mining bill will be passed by the State Duma soon.
But it has been hampered by the crypto-skeptic Central Bank.
The bank wants to blanket-ban “private” cryptoassets like Bitcoin (BTC).
In recent months, the bank has suggested it is ready to compromise on some aspects of its stance.
And it has reluctantly given the go-ahead to trade firms who use crypto to evade sanctions.
Is Crypto Legal in Russia?.
Russian lawmakers have thus far only approved one piece of crypto-specific legislation.
This 2020 law bans the use of crypto as a form of payment and forbids firms from advertising crypto-releated services.
All other bills, proposals, and the like have failed to satisfy both the pro-industry ministry and the ever-skeptical Central Bank.
But perhaps in a bid to end the years-long impasse, the ministry has now reportedly suggested “prohibiting the organization of the circulation of [cryptoassets], with the exception of [crypto] mining.”
The proposals would effectively ban crypto exchanges and crypto ATMs from Russia.
But, perhaps unsurprisingly, the proposals are already facing challenges in Moscow.
Two “law enforcement agencies” have said they “oppose the amendments.”
They agencies reportedly believe that introducing “a ban on organizing the circulation of digital currency as a whole” requires “additional discussion.”
The Federal Security Service (FSB) reportedly said that the definition of “the organization of the circulation of [cryptoassets]” needed a clearer definition.
And the Investigative Committee, the nation’s main federal investigating authority, also said the “wording proposed by the Ministry of Finance” could “cause confusion.”
Police and other officials might also be concerned that it would be hard to enforce such as ban when, per government figures, some 12% of Russians own cryptoassets.
If these objections derail the ministry’s crypto plans, it would not be not the first time law enforcement agencies have seemingly thrown up an insurmountable obstacle.
The Central Bank has previously stated that miners’ tokens should only be sold on foreign crypto exchanges.
But law enforcement agencies objected, warning that this could lead to a rise in money laundering.
https://cryptonews.com/news/russian-ministry-proposes-crypto-ban-but-miners-stablecoin-issuers-may-safe.htm
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***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT!
This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research.
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Russian Trade Ministry Wants Bitcoin Miners to Use Domestic Hardware
The Russian Ministry of Industry and Trade has stated that it wants to create a legal system that would oblige Bitcoin (BTC) and crypto miners operating in the country to prioritize domestically produced mining hardware and apps – and buy from Russian providers when possible. Per RBC, the proposal came from Denis Manturov, the Minister, who stated that changes should be made at the “legislative level to oblige the use of Russian equipment as a priority,” providing it was “available on the market.”“We propose establishing a legislative requirement that would [oblige] the predominant use of Russian hardware and software systems – if they are available on the market – for the industrial production of cryptoassets in Russia.”The ministry, in conjunction with the Ministry of Construction, Housing, and Utilities, as well as other federal agencies and industry representatives, has also unveiled proposals for the creation of a “regulatory sandbox” for certain miners to operate within – and has suggested that industrial players be allowed to mine BTC and crypto using power from thermal energy stations. President Vladimir Putin has previously hinted that he would be keen for Russia to develop its crypto sector – and has made note of the nation’s abundant energy resources and their potential use in the crypto mining sector. The Ministry of Finance has been keen to legalize mining and crypto trading – and begin taxing both. But the crypto-skeptic Central Bank remains categorically opposed to the move. However, lawmakers have suggested that Russia may be edging closer to a vote on the Finance Ministry’s proposal, with talk of a vote before the end of the State Duma (Russia’s parliament)’s spring session. Izvestia reported that the MP who has been charged with masterminding crypto regulation, Anatoly Aksakov, stated that he expected the draft law to be submitted to the Duma in May. However, Aksakov conceded that as the Cabinet of Ministers was “intensively working on anti-crisis policies,” the “issue of regulating cryptocurrencies” – once pressing – has now “faded somewhat into the background.” (On February 24, Russia invaded Ukraine.)Regardless, a number of legal and tax experts told the media outlet that it was now almost inevitable that the crypto industry in Russia would somehow be “removed from the grey zone” that it currently operates in. They claimed that doing so would allow the government to raise tax revenues by some USD 259m.____Learn more:- Exclusive: How the Ukrainian Crypto Fundraising Started, How It’s Going, and What’s Next- As More Russians Support Massacre in Ukraine, Here’s How Some Big Crypto Companies Respond- US Hits Russian Crypto Exchange with Sanctions, Russian Central Bank Affraid That Crypto Will Replace Ruble- Russia Looks to Bolster its Bitcoin & Crypto Mining Industry Amid War in Ukraine
All data is taken from the source: http://cryptonews.com
Article Link: https://cryptonews.com/news/russian-trade-ministry-wants-bitcoin-miners-to-use-domestic-hardware.htm
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Russia’s Ministry of Energy Pushes to Legalize Crypto Mining
Russia’s Ministry of Energy is pushing for the legalization of industrial crypto mining, and wants lawmakers to press ahead with a much-anticipated mining-related bill.
Per the Russian news agency Tass, the ministry made the comments at the weekend, during the St. Petersburg International Economic Forum.
Pavel Snikkars, the Energy Vice Minister, said that the ministry “supports” the legalization of mining and “expects” lawmakers to approve “the introduction of taxation for miners.”
Snikkars said:
“We want [crypto] miners to be recognized as a category of [energy] consumers. We hope that taxation will also be introduced for this category of consumers. It is important for us to be able to identify [crypto miners].”
The Vice Minister added:
“We understand that certain regulatory features will have to be introduced for [crypto miners].”
Russian Energy Ministry: Time to Legalize Crypto Mining.
Snikkars added that the Ministry of Energy was also planning to propose “certain restrictions” on the “generating capacities” made available to miners.
A number of crypto mining hotspots have sprung up in Russia in the past few years.
Perhaps the most notable of these is the Irkutsk Oblast in Siberia, which has entered into a somewhat complicated relationship with crypto mining.
The Irkutsk authorities have complained that miners are placing a strain on local energy resources, but have conversely seemed keen to allow some form of industrial mining to flourish.
Much of the problem centers around the fact that crypto mining is not recognized as an industry in Russia.
As such, in most situations, energy firms cannot charge miners at industrial rates.
Instead, many miners are charged at (subsidized) residential rates.
The ministry has attempted to intervene while lawmakers drag their feet, allowing energy providers to identify miners and bill them at higher rates.
But this imperfect solution has been found lacking.
And the ministry instead proposes creating a special crypto mining rate, which would be separate from both industrial and residential rates.
Miners themselves have long called for Moscow to “hurry up” and legalize their industry.
The Vice Minister warned that “the whole country” could “pay” if miners were allowed to continue unchecked.
Snikkars concluded:
“[We will ensure that] the needs of this particular category of energy consumers is represented with regulation and legislation. And we will try to bring stability to this situation.”
https://cryptonews.com/news/russias-ministry-of-energy-pushes-legalize-crypto-mining.htm
#crypto #bitcoin #ethereum #cryptocurrency #news #blockchain #litecoin #cryptonews #cryptonewstoday #cryptoworld #cryptoworlddaily #russia #russianews #russianewstoday #cryptomining #cryptominingnews #crypto
***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT!
This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research.
bitcoin, blockchain, crypto, cryptocurrency, altcoin, investment, ethereum, bitcoin crash, xrp, cardano, ripple
Inside the Largest Bitcoin Mine in The U.S. | WIRED
Bitcoin hit 1 trillion market cap this year. This has inspired some bitcoin operations to expand. The ban on mining in China has caused a mass exodus, and some mining operations are moving their facilities to the United States. We go to Rockland, Texas to a look inside the largest bitcoin mine in North America. Operated by Whinstone U.S., is this large mine one of the first of many?
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