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Cryptocurrency mining is permitted in areas with nuclear hydroelectric

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.

29-Sep-2022 By: Simran Mishra
Cryptocurrency minin

According to Russian officials planning 

to legalize it, cryptocurrency mining should be permitted in regions with excess electricity and restricted in others that face deficiencies.

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.

Expert identifies the best cryptocurrency mining locations in Russia

Recently, the Ministry of Finance and the Central Bank of Russia reached an agreement on legislation that will control cryptocurrency mining and is expected to be passed before the end of the year. Industrial activity should 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.

Anatoly Aksakov, the chairman of the legislative financial market committee, was one of them and he said that other locations with power shortages should outlaw the energy-intensive technique. The deputy demanded that mining and cryptocurrencies be regulated together and gave the assurance that the relevant bill would be submitted to the State Duma soon.

It's not a novel concept to limit the minting of digital currency to areas with consistent electricity generation surpluses. The Russian Ministry of Economic Development made a suggestion in a similar vein in February, suggesting the introduction of "appropriate" electricity prices for miners.

In an interview with RBC Crypto, Roman Nekrasov, co-founder of the ENCRY Foundation, which represents IT firms offering services in the blockchain and tech sectors, discussed his predictions for which Russian locations will be most likely to be permitted to host crypto mining operations. He also included a list of places where miners will be little welcomed.

According to him, mining will be allowed in areas with hydroelectric and nuclear power facilities, which have already been home to cryptocurrency farms for a number of years. There are several hydroelectric power plants in Irkutsk Oblast and Krasnoyarsk Krai, as well as nuclear power stations in the Tver, Saratov, Smolensk, and Leningrad districts.

According to Nekrasov, the capital city of Moscow, as well as the nearby Moscow Oblast, Belgorod Oblast, and Krasnodar Krai, which have historically experienced energy shortages, will likely outlaw the minting of digital currencies. He also anticipates a tougher crackdown on illegal mining operations in Dagestan. Mining has been a common source of income in the Russian republic, another area with a poor electrical supply and considerable unemployment.

The specialist in the cryptocurrency sector also believes that Russian authorities would permit cryptocurrency extraction in Karelia. Roman Nekrasov said that under specific circumstances, such as requiring mining companies to finance the development of minor hydropower facilities, this might yet occur.

In a survey that was published earlier this year, Karelia was ranked as one of the top locations for cryptocurrency mining in Russia.

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