Bitcoin Miners Could Find a Home in Russia if Regulations Advance

Bitcoin mining in Russia is not yet legally regulated, and in the context of the international conflict that Russia is going through, it is urgent to establish the legal framework for this activity in the country, according to a government official.

Evgeny Grabchak, Russia’s energy minister, stated that there is a legal vacuum regarding Bitcoin mining which should be fixed as soon as possible.

The legal vacuum makes it difficult to regulate this area and establish clear rules of the game. The legal vacuum must be eliminated as soon as possible. If we want to carry out this activity in some way, and we have no other options in the current situation, we must introduce legal regulation to add the concept of mining to the regulatory framework.

Evgeny Grabchak, Russian Minister of Energy.

According to statements, the minister noted that the legal framework should be adjusted to the regional development plans, so that the energy capacities of each locality are determined to establish Bitcoin miners. This measurement may mean that the government will be able to determine which areas can have mining farms and which cannot.

Russia Increasingly Opens Up To Bitcoin Mining

Some entities of the Russian government have shown their support for Bitcoin mining recently, although they still cannot reach a general agreement between the authorities if they agree with the legalization of the cryptocurrency or not.

Last February, the Russian Ministry of Economy proposed to allow Bitcoin mining in regions with surplus energy, benefiting miners with affordable prices, CriptoNoticias reported.

This proposal came weeks after the Central Bank of Russia recommended banning cryptocurrencies and their mining, considering them a financial pyramid and an “unproductive consumption of electrical energy,” reported this medium.

However, voices such as those of the energy minister, the finance ministry and the president himself, Vladimir Putin, have been in favor of mining Bitcoin in Russia with energy surpluses, although they also recognize the need to create regulation.

Bitcoin mining and its legalization as an acceptable means of payment on some exchanges may be a pressing need for Russia, in the context of international sanctions and the war with Ukraine, which has isolated this country from its trading partners in the world.

Earlier this month, a committee of experts met in Russia to discuss this issue, and it emerged that the country could accept bitcoin (BTC) as a means of payment for oil and gas if necessary. The Russian Prime Minister even called this week to integrate bitcoin (BTC) and cryptocurrencies into the national economy, as we reported.

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