Russian Energy Minister Wants To Legalize Crypto Mining – The Sanctions Are Hurting The Country?

2022-3-28 15:53

The tables have turned in Russia as the country’s energy minister calls for the legalization of crypto mining.

Russia has had to fend for itself in recent months as it has faced escalating sanctions from the West and other nations.

On Saturday, Deputy Energy Minister Evgeny Grabchak stated that Russia’s mining sector is now operating in a “legal vacuum” that must be addressed immediately.

Suggested Reading | Hacker Group Anonymous Leaks 35,000 Files Of Stolen Russian Central Bank Documents

Turning To Crypto For Help?

According to Grabchak, Russia has to lift the curtain surrounding laws and exploit crypto mining to its benefit, adding that the government should select where they want miners clustered for maximum output in a display of good faith.

Grabchak’s remarks came in the aftermath of some of the most severe economic sanctions ever imposed on Russia in response to its invasion of Ukraine. Russia is effectively cut off from the western banking system as a result of the sanctions.

The official said:

“This legal void must be filled immediately. If we are to coexist with this activity, and we now lack other options, we must enact legal legislation, incorporating the notion of mining into the regulatory system.”

Russia, which has abundant energy resources, has long been considered a possible location for Bitcoin mining as a means of coping with ever-tougher sanctions imposed on the country.

BTC total market cap at $899.54 billion on the daily chart | Source: TradingView.com Alternative Source Of Revenue

Grabchak emphasized that it would be more efficient to decide mining areas and allocate energy resources to miners at the regional level than the federal level, and that this should be guided by regional development plans.

He stressed the importance of capping energy use in regional development plans, which will result in a more efficient market.

Recently, Russian State Duma member and Energy Committee Chairman Pavel Zavalny proposed Bitcoin and national currencies as alternative payment methods for energy exports to “friendly countries.”

Suggested Reading | Rio De Janeiro To Enable Crypto Tax Payments Starting Next Year

Choking Russia’s Economy

The US and its partners have taken steps to ensure that the Russian government cannot conduct financial transactions in the crypto field. While the majority of large cryptocurrency exchanges operate in Russia, they have been forced to comply with blacklists targeting certain Russian organizations.

Meanwhile, Russia has seen a dramatic growth in cryptocurrency usage this year, with a government report earlier revealing that Russians possessed almost 12% of the world’s total cryptocurrency, or roughly $240 billion.

The country’s plentiful energy supply, combined with its frigid environment, makes it a suitable mining option. Before the Ukraine war broke out, crypto advocates predicted that Russia will be the next major mining hub, following crackdowns in mining regions China and Kazakhstan.

Featured image from Coingape, chart from TradingView.com

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

country sanctions russia mining energy minister crypto

country sanctions → Результатов: 126


Venezuela’s Bolivarian Army Embarks on Bitcoin Mining for Income and Sanction Evasion

Venezuela is further expanding its crypto foothold in what seems to be a tact towards salvaging the country’s economy while evading imposed sanctions, especially by the United States. Through one of its engineering brigades, the Venezuelan army recently revealed a Bitcoin mining center dubbed ‘Digital Assets Production Center of the Bolivarian Army of Venezuela.

2020-12-2 00:26


Iran to Use Bitcoin for International Trade, Bypassing the Dollar Due to US Sanctions

With the latest amendment to the legislation, Iran has become the first country to use cryptocurrencies at a state level for import funding. The Iranian Cabinet amended legislation to redirect digital currencies into the funding mechanism of the Central Bank of Iran (CBI) for imports, as per the report by the official The Islamic Republic […] The post Iran to Use Bitcoin for International Trade, Bypassing the Dollar Due to US Sanctions first appeared on BitcoinExchangeGuide.

2020-10-31 19:08


Iranian Crypto Miners Must Register Identities, Rigs, and Overall Size With the Government

Iran is one of the few countries that has embraced cryptocurrency mining as a legal business in a bid to increase revenues and escape the tough economic U.S. sanctions placed on the country. In a bid to regulate the crypto mining industry and eliminating confusion within the industry, the government will place monitoring controls on […]

2020-7-8 17:34


Фото:

Ethereum Foundation Researcher Arrested by FBI for Allegedly Helping North Korea Evade U.S. Sanction

Virgil Griffith, a research scientist with the Ethereum Foundation and citizen of the United States, has been arrested under the International Emergency Economic Powers Act in line with the accusation that Griffith helped North Korea understand how they can use cryptocurrency to evade United States economic sanctions on their country.

2019-11-30 10:00


UN Accuses North Korea Of Laundering Money Via Hong Kong-based Blockchain Company

The sanctions committee of the United Nations has recently accused North Korea of using a blockchain firm in order to launder money overseas. According to the committee, an investigation was conducted and it was discovered that the country was using cryptos to evade sanctions imposed on it by the international community. Marine China, a blockchain […]

2019-11-7 23:00


Venezuela’s Largest Retailer And Local Crypto Pioneer, Traki, Launches Its First Ever Bitcoin ATM

The largest retailer in Venezuela, Traki, installs its first ever Bitcoin ATMs that allow customers to buy two cryptocurrencies, BTC and Dash (DASH). As the country crumbles under hyperinflation and sanctions from various countries across the globe, the government is turning to cryptocurrencies as a stable form of payment. Venezuelan president, Nicolas Maduro, announced the […]

2019-10-7 17:24