Russian officials are planning to legalize cryptocurrency mining in areas with extra electricity. A recent map from a crypto industry specialist shows the areas where Moscow is most likely to permit mining and those where it is most likely to forbid it.
Industrial activity will only be permitted in areas of the large country that have the capacity to produce more electricity than they require, according to lawmakers who are trying to finalize it.
It was Anatoly Aksakov, the head of the parliamentary Financial Market Committee, who proposed keeping crypto mining prohibited in areas with severe energy shortages. He promises that a bill to lift the prohibition on cryptocurrency mining would be filed in the State Duma soon (Russian Parliament). Additionally, he made a suggestion about mining and cryptocurrency being regulated.
It’s not a novel concept to limit the minting of digital currency to areas with consistent electricity generation deficits. The Russian Ministry of Economic Development made a suggestion in a similar vein in February, suggesting the introduction of “acceptable” electricity prices for miners.
Mining will be allowed to operate in areas with hydroelectric and nuclear power facilities, according to Roman Nekrasov, co-founder of the ENCRY Foundation. Crypto miners are anticipated to be located in areas like Saratov, Tver, Leningrad and Smolensk which have nuclear power plants and Irkutsk Oblast and Krasnoyarsk Krai, which have several hydroelectric power plants. However, regions like Moscow, Moscow Oblast, Krasnodar Krai, and Belgorod Oblast which have been facing energy deficits will still prohibit mining.
ENCRY foundation represents IT companies in Russia which provide services in the field of tech and blockchain.
Despite its enormous energy-producing capabilities, the Russian Federation is another region where energy deficits are common. In contrast, crypto mining has become a very popular source of income.