{"id":90312,"date":"2024-03-26T23:59:39","date_gmt":"2024-03-27T03:59:39","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=90312"},"modified":"2024-03-26T23:59:40","modified_gmt":"2024-03-27T03:59:40","slug":"russian-ministries-discussing-crypto-mining-legalization","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=90312","title":{"rendered":"Russian Ministries Discussing Crypto Mining \u2018Legalization\u2019"},"content":{"rendered":"
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Russian ministries could be prepared to \u201clegalize\u201d industrial crypto mining in the country. But one key department could yet throw a spanner in the works.<\/p>\n

After years of dismay and repeated pleas for Moscow to formally recognize mining as a form of \u201centrepreneurship,\u201d miners this month submitted a new draft bill to ministries.<\/p>\n

Per the Russian newspaper Izvestia, most ministers are now ready to grant mining legal status.<\/p>\n

However, the Ministry of Industry and Trade \u2013 which has the final say on business classifications \u2013 is not convinced.<\/p>\n

Russian Ministries \u2018Break Ice\u2019 on Crypto Mining Discussion<\/h2>\n

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Miners want Moscow to recognize their business as an industry. They want the state to assign mining a code in the All-Russian Classifier of Economic Activities (OKVED).<\/p>\n

The Ministry of Energy told Izvestia that it \u201csupports\u201d this move, as does the Ministry of Economic Development.<\/p>\n

The Ministry of Finance, Cryptonews.com<\/em> believes, is also inclined to back the proposal. It has previously suggested legalizing industrial mining, and banning \u201cprivate\u201d mining ventures.<\/p>\n

The media outlet quoted the deputy head of the \u201crelevant\u201d State Duma committee as stating that \u201cnot everyone is in favor of\u201d the idea.<\/p>\n

But the same lawmaker noted that \u201cthe ice has been broken,\u201d and opined that a decision would be forthcoming \u201cwithin a month.\u201d<\/p>\n

MP Valery Seleznev, a member of the State Duma Committee on Energy, said a \u201cnumber of interdepartmental meetings\u201d have been held on mining in recent weeks.<\/p>\n

The Russian State Duma in session. (Source: Duma.gov.ru [CC BY 4.0])<\/figcaption><\/figure>\n

Seleznev noted that the Ministry of Digital Development had little interest in the matter until recently.<\/p>\n

But, Seleznev said, the ministry has since had a change of heart and is now participating in talks.<\/p>\n

Not Everyone on Board with Mining Plans, Insiders Say<\/h2>\n

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Earlier this year, miners suggested that they would allow Russian government officials to make use of their cutting-edge data centers to expand state-run IT projects.<\/p>\n

Miners have more support still in the State Duma, where lawmakers Anton Tkachev, Vladimir Plyakin, Grigory Shilkin, and Sardana Avksentyeva have backed their draft bill.<\/p>\n

One party that has not yet made its feelings clear is the Central Bank, which has previously called for a ban on crypto mining.<\/p>\n

A financial expert claimed this week that Moscow has little appetite for crypto-related discussions.<\/p>\n

She said that the Central Bank and most ministries are instead focusing on rolling out the digital ruble.<\/p>\n

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US officials this week indefinitely withdrew a survey aimed at gathering information on the crypto-mining industry’s power use, hindering attempts to understand the sector’s impact on grids and energy prices at a time of record activity https:\/\/t.co\/2fZxyQndDT pic.twitter.com\/TQ0QpRiN7L<\/a><\/p>\n

\u2014 Reuters Legal (@ReutersLegal) February 28, 2024<\/a><\/p>\n<\/blockquote>\n

Hope Springs for Russian Crypto Miners?<\/h2>\n

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The media outlet said authorities are \u201cconsidering two options\u201d for legalization. One of these involves \u201ccreating a new, separate OKVED category for [crypto] mining.\u201d<\/p>\n

The other would see ministers add mining to an \u201calready existing section of the OKVED database.\u201d<\/p>\n

Miners have repeatedly called on Moscow to help take their industry out of the legal \u201cgrey\u201d zone.<\/p>\n

The finance ministry also wants to do this, believing it can expect a tax windfall if mining becomes \u201clegal.\u201d<\/p>\n

A crypto mining bill was submitted to the State Duma in 2022, but failed to pass the committee stage after a first reading.<\/p>\n

The nation\u2019s biggest mining firm, BitRiver, approached the Minister of Industry and Trade Denis Manturov with a legislative proposal in mid-2023. This was also unsuccessful.<\/p>\n

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Russia and Western countries have traded barbs over a deadly attack by gunmen that killed 137 people in a concert hall outside Moscow. Here is a timeline of events before and after the attack: https:\/\/t.co\/KRTqvqZYwO<\/p>\n

\u2014 Reuters (@Reuters) March 26, 2024<\/a><\/p>\n<\/blockquote>\n

The head of the Russian Industrial Mining Association (IPM), Sergei Bezdelov, told the media outlet:<\/p>\n

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\u201cTaking into account the more attractive market conditions for conducting mining activities in the Russian Federation, we have every chance to push the United States out of first place.\u201d<\/p>\n<\/blockquote>\n

Earlier this month, the IPM said that Russian industrial miners were ready to invest $4 billion in the industry.<\/p>\n<\/p><\/div>\n