Russia Plans Allowing Mining If Mined Crypto Sold Abroad

• According to Pronin, the CBR would not be responsible for mining.
• According to the governor, Russia should not allow exchanges of digital currencies.

Crypto mining has been approved by the Moscow Monetary Authority, but only if Russian miners sell the currencies, they produce outside the nation, according to Kirill Pronin, director of the Bank of Russia’s Financial Technologies Department.

Shift of Momentum by Central Bank

To date, the Russian central bank has been the lone voice advocating for a complete ban on all cryptocurrency-related operations in Russia, including mining. Faced with criticism from other government agencies and budgetary limits imposed due to the conflict in Ukraine, its posture has begun to shift.

Last month, Governor Elvira Nabiullina said they might be allowed if crypto payments don’t “penetrate” the Russian financial system. According to her, Russia should not allow exchanges of digital currencies like bitcoin since they are too unpredictable and unsafe for investors.

According to Pronin, the Central Bank of Russia (CBR) would not be responsible for mining. Still, it is one of the methods to obtain cryptocurrency via fees for the authentication and verification of crypto transactions conducted by miners.

Russian crypto mining businesses have also had to contend with international limitations when trying to withdraw cash, according to Financial Policy Department chief Ivan Chebeskov. To keep the sector afloat, he indicated that Russia could have to build its own exchange infrastructure.

It was also re-iterated by Kirill Pronin that according to the CBR, the cryptocurrency created by Russian miners should be traded outside of Russia and not amassed there. It’s important to avoid establishing incentives for its usage in domestic payments in the future.

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