According to Russian Deputy Minister of Energy Evgeniy Grabchak, the legal vacuum in the crypto mining business must be closed "as quickly as feasible." Instead of regulating crypto farms at the federal level, the government official suggested creating regional quotas for them.
Regional Energy Quotas for Crypto Miners are proposed by a Russian official.
During Russia's first national meeting of licensed bitcoin miners, held recently in Irkutsk, Evgeniy Grabchak demanded that cryptocurrency mining be regulated shortly. The Siberian oblast has been branded "Russia's mining capital," with power costs starting at $0.01 per kWh. Coin minting in the region has increased since China cracked down on the business last May. Grabchak elaborated, as quoted by Tass:
Because of the legal void, regulating this industry and establishing transparent rules of the game is challenging. It must be removed as quickly as feasible... In the current situation, we don't have any other choices. It is necessary to implement legal regulation that incorporates the notion of mining into the regulatory framework.
Russia's deputy energy minister further proposed that determining mining facility locations and available energy capacity at the regional level rather than the federal level would be more efficient. These quotas must be in line with the Russian regions', other sectors', and energy system's development objectives, he noted.
Authorities in Irkutsk and elsewhere have already declared their willingness to give locations for industrial cryptocurrency extraction if the firm is recognized as a legitimate industry, as a rising number of officials have suggested. Anatoly Aksakov, the head of the legislative Financial Market Committee, Deputy Prime Minister Alexander Novak, and Igor Kobzev, the Governor of Irkutsk Oblast, have all made similar calls.
Russia has identified an opportunity to utilize cryptocurrencies to regain access to global funds as a result of increasing western sanctions over the invasion of Ukraine, and Moscow is exploring accepting bitcoin for its energy exports. Despite the Bank of Russia's staunch resistance to the legalization of a variety of crypto activities, including mining, government efforts to regulate Russia's crypto ecosystem have restarted.
Most institutions have backed the Finance Ministry's position, which prefers regulation with strong control over outright prohibition. The agency proposed a new law titled "On Digital Currency" in February. President Vladimir Putin pushed the government and the central bank to overcome their disputes in January, emphasizing Russia's competitive advantages in the mining industry.