- Deputy Minister of Energy Evgeny Grabchak has recommended that Russian authorities incorporate a legal framework for cryptocurrency mining.
- Grabchak also opined that regional regulations could be more efficient than federal laws.
- The Russian energy official stressed that these regulations must come soon to keep up with contemporary innovation.
Russia could be on the verge of dispelling uncertainty regarding cryptocurrency mining regulations after comments from a top energy official. According to a local media news outlet Tass, Evgeny Grabchak, Russia’s Deputy Minister of Energy has proposed for crypto mining to fall under the purview of the country’s legal infrastructure.
Grabchak emphasized that legalizing Bitcoin and other crypto mining activities will allow relevant agencies to ensure compliance while incentivizing the growth of digital assets in the country. The Deputy Minister added that:
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
Furthermore, Grabchak opined that implementing mining laws at the regional levels offers an optimized route for aligning crypto operations with local development strategies. The energy official also highlighted that authorities should provide free energy facilities and assign specific sites for each mining facility.
Russia’s Plans to Standardize its Digital Economy
Deputy Minister Grabchak’s comments complement recent rhetoric from the country regarding digital innovation. Earlier in September 2021, the chairperson of the Duma Committee on Financial Markets, Anatoly Aksakov, announced intentions to recognize the growing cryptocurrency mining space as a legal business practice.
However, the Central Bank of Russia followed up with a proposed ban on crypto mining and the use of any digital currencies.
Despite stiff opposition from the country’s apex bank, President Vladimir Putin maintained that cryptocurrencies hold untapped potential for the economy and instructed relevant agencies to develop agreeable regulations.
Since then, the Finance Ministry has submitted its first policy proposal geared towards legalizing Bitcoin and other virtual assets as acceptable investment vehicles. However, the policy stressed that crypto will not be made legal tender for the foreseeable future.
Most recently, the European superpower also announced plans to accept BTC as payment for its energy resources in a bid to mitigate financial sanctions levied by the U.S. and other countries.