Putin Champions Plan to Legalize and Regulate Bitcoin & Crypto Mining
Russia may be accelerating its path to becoming one of the world's largest Bitcoin (BTC) and crypto miners, with reports that President Vladimir Putin has backed a move that could result in the industry being legalized and placed under government regulation. Bloomberg reported that the move could be "good news" for the crypto mining industry, explaining that "three people familiar with the matter" had asked not to be identified because the information is not public President had “approved” a “Russian government proposal to tax and regulate mining and rejected the central bank’s proposal to ban it outright.” However, the plan proposes a number of containment measures that the industry may not welcome: in regions with a surplus of electricity," including Irkutsk, Krasnoyarsk and Karelia. All three regions already have a large number of crypto miners due to their favorable cold weather. ns and excess energy.
The report noted that Kremlin spokesman Dmitry Peskov "refused to say Putin's position," but added that the president "ordered the government and central bank to settle their differences," echoing Putin's own words. Yesterday, Cryptonews.com reported that Putin has noted Russia's "certain competitive advantages" in the crypto space, "particularly in [crypto] mining." in Crypto: According to data from the University of Cambridge, Russia was the third largest Bitcoin (BTC) mining nation in the world after the US and Kazakhstan at the end of August last year. However, this picture may already have changed drastically. Many of the miners who fled China's crypto crackdown last year are believed to have relocated to Russia. that Russia's control of the global hash rate may well have exceeded 11.23% in August 2021 and mining. According to RBC, the Ministry of Finance, which has previously at least partially defended the crypto industry against the vehemently anti-crypto central bank, has submitted draft proposals to the government that would, if accepted, allow citizens to conduct crypto transactions over the conventional one Banking framework, provision of personal data about crypto holders became transparent. A similar system — with anonymity removed from the equation
— has already been implemented in South Korea, where all cryptocurrency trading must be done through exchanges partnered with domestic banks. The ministry reportedly claims that regulating cryptocurrencies will be beneficial to the Russian state and help increase tax revenues. The move, he says, will help police and other agencies detect criminal behavior. He also warned that a lack of regulation or a blanket ban would result in a thriving cryptocurrency black market and that it would ultimately undermine the cryptocurrency sector in its quest for mainstream acceptance. The move follows comments from several senior parliamentarians, including committee chairs, who have attacked the central bank's repeated calls for a ban. Some even claimed that the central bank's position risked making Russia a "laughing stock" in the eyes of the international community.