Russian minister pushes for legalization of crypto mining

TL; DR Breakdown

• Russian minister wants legalization of crypto mining
• The minister wants a regional mining plan
• Russia records surge in crypto trading volume

Over the last few months, Russia has had to survive on its own as countries continue to sanction the European giant. Although the impending war and invasion of Ukraine is still ongoing, the country has been dealt a hard blow. However, in a move to cushion the effects of several sanctions on the country, the Deputy Minister of Energy, Evgeny Grabchak, has urged the government to look to legalize crypto mining across the country.

Russian minister wants a regional approach to mining

According to Grabchak, the country needs to remove the veil surrounding regulations and leverage Bitcoin mining to its advantage. The minister said that in a show of good faith, the government needs to decide where they want miners to be concentrated for effective output.

The Russian minister also mentioned that the miners should be coordinated regionally with their activities falling under the development plan governing the regions. The Russian minister also mentioned that the country should clear out all issues associated with regulating bitcoin and mining activities across the country. This will help them increase output and cushion the effects of the respective sanctions on their economy.

Russia records surge in crypto trading volume

In a statement, the Russian minister noted that the uncertainty in terms of regulation in the crypto sector has previously set the sector back in the country. He noted that if the country aims to get on top of the current situation, they need to be friendly with the sector. Finally, Grabchak said that the regulations must feature some special considerations. Russia has been in a long tussle over-regulation of Bitcoin and other digital assets.

While some few entities saw it as a welcome development, other parties have opposed the adoption in recent years. Despite the sanctions, Russia has seen a massive spike in trading volumes of Bitcoin backed by the country’s native currency. However, there are reports that Russia might officially introduce a regulatory framework to govern the digital assets at the end of this year.

Notably, the country has no plans to completely ban the usage and trade of the assets despite calls from all angles in the country for this to happen. In light of the recent events in the country, Russia might hold off on other activities pending when it sorts out the issues with Ukraine.