Russian Finance Ministry renews support for crypto mining

While backing cryptocurrency mining firms, Russian

authorities are undecided on whether to prohibit individuals from mining cryptocurrency.

The Russian Ministry of Finance has indicated renewed encouragement for Cryptocurrency (BTC) mining as the country keeps working on new laws for the cryptocurrency industry.

Russia should foster the growth of industrial-level cryptocurrency mining in the nation, according to Alexey Yakovlev, Director of the Ministry's financial policy section.

There's no purpose in prohibiting retail or domestic Cryptocurrencies mining, as per Yakovlev, as published by the local magazine on Thursday. At a previous round panel discussion titled "Mining legislation in Russia: For and Against," Russian MPs reviewed the two types of bitcoin miners.

According to Yakovlev, Russian officials long ago struck an agreement on the legal regime for cryptocurrency mining firms, encouraging their activity but also forcing them to pay federal taxes.

However, there is some dispute over retail miners, according to Yakovlev. He went on to say that the Finance Ministry is not willing to outlaw such mining, saying:

"We feel it is vital to work for the betterment of industrial mining, but we do not believe it is necessary to prohibit domestic mining."

Yakovlev went on to note that legislators are still working on the Russian cryptocurrency regulatory legislation, with the goal of maximising profits while minimising possible hazards like money laundering and terrorism funding, as well as ensuring energy security.

As reported earlier, certain significant cryptocurrency mining-related enterprises in Russia would be able to continue operating even if the government began a crackdown on cryptocurrency. As per the CEO of BitRiver, the leading bitcoin mining colocation services provider in Russia, such steps are unlikely to have an impact on the company.

In mid-February, Russia's Finance Ministry formally submitted the very first documentation connected to the country's new cryptocurrency regulatory legislation. The Department earlier issued a plan for governing the cryptocurrency market, emphasising the importance of the country's cryptocurrency mining business, since Russia is placed third in terms of Bitcoin mining hash rate as of August 2021.