Potential Ban on Cryptocurrency Mining in Certain Regions Disrupts Regulatory Efforts in Russia
The potential for a ban on cryptocurrency mining in regions classified as ‘energy deficient’ has hindered the ability to reach a consensus on the approval of cryptocurrency mining regulations in Russia. The proposed bill, which is expected to pass in August, would give authorities the power to declare mining operations in these regions illegal, based on government considerations.
Russia Cryptocurrency Mining Bill Proposes to Allow Ban of Mining Activities in ‘Energy Deficient’ Regions
The ongoing attempt of the government to regulate cryptocurrency mining activities in Russia has caused differences between lawmakers and the mining industry. Russian cryptocurrency mining industry representatives haven’t agreed with certain stipulations of the cryptocurrency mining bill allowing authorities to ban cryptocurrency mining activities in regions designated as “energy deficient.”
According to Izvestia, the Industrial Mining Association (IMA) sent several letters to the State Duma to ask for the exclusion of these determinations. In the organization’s view, this entails certain risks for mining investors in the country, representing a “violation of the balance between private and public interests.”
The association proposes that if this specific stipulation is finally adopted into the law, the rules should describe the procedures to approve this ban, and include compensation for the investors affected by such determination.
Nonetheless, the Ministry of Energy in Russia considers this acceptable but leaves the decision to the State Duma. However, establishing the possibility of a mining ban does not mean that a ban will be enacted at first. Anton Gorelkin, one of the co-authors of the bill, which has been delayed several times, stated:
The detailed conditions and framework for banning mining in individual territories should be determined by discussions with the participation of industry representatives.
Another of the omissions in the bill is related to the participation of foreign capital in cryptocurrency mining investments in Russia. Industry participants ask to allow these investors to participate in these activities, warning that a good chunk of the crypto mining farms in Russia is owned by foreign groups from China and countries from the Persian Gulf.
What do you think about the ongoing discussions on regulating the cryptocurrency mining industry in Russia? Tell us in the comments section below.
Bitcoin.com News is seeking a News Writer to produce daily content on cryptocurrency, blockchain, and the digital currency ecosystem. If you are interested in becoming a key member of our innovative global team, apply here.
