Putin is in favor of regulating crypto mining in Russia: Report

Russia’s President Vladimir Putin is reportedly backing plans for regulating crypto mining in the country, Bloomberg reported on Thursday.

According to unnamed sources familiar with the matter, President Putin’s plan will see crypto mining restricted to regions in the country with excess electricity supply. The plan will also involve levying taxes on approved cryptocurrency mining establishments in the country.

On Wednesday, Putin countered calls by the central bank for a blanket ban on cryptocurrencies. At the time, the Russian President stated that the country could gain “competitive advantages” from allowing crypto mining activities.

Putin has since asked the central bank to work in tandem with the government on a path forward for allowing regulated crypto-related activities. Russia legalized ownership of virtual currencies back in 2020 but they are not allowed as a medium of exchange in the country.

Russia ranks third on the list of crypto mining countries based on hash rate distribution, according to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI) website. The United States and Kazakhstan occupy the first and second positions but the latter’s energy shortage could lead to further migration of hash power to other countries.

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