• Advisors to the Kremlin have suggested that home crypto mining should be banned in Russia, or in some of its regions.
• The Energy Committee of the State Council, an advisory body to the Russian president, has recommended imposing a ban on the minting of digital currencies in residential areas.
• The crypto-related activity, which is a source of additional income for many ordinary Russians, especially in places with access to cheap electricity, is not regulated yet.
The Russian government is proposing a ban on crypto mining in residential areas, citing safety concerns with high electrical loads and fire hazards. The Energy Committee of the State Council, an advisory body to the Russian president, has recommended that a ban be imposed on the minting of digital currencies in residential areas, with the aim of reducing fire risks in apartment blocks and houses.
The suggestion follows a meeting of the committee held in mid-December, and if enacted, it would mean a complete prohibition of cryptocurrency mining activities in those regions. Among the areas that could potentially be affected by the ban are Moscow and the Moscow Oblast. The decision is not yet finalized, but it is being heavily considered as a way to protect residential areas from the dangers of unregulated crypto mining.
The idea of a ban has been met with some opposition, as digital currency mining has become a source of additional income for many ordinary Russians, particularly in places with cheap electricity. Anton Tkachev, a member of the State Duma Committee on Information Policy, Information Technologies and Communications, believes the push to ban mining in residential areas and energy-deficient regions is a logical move, as industrial mining farms already consume critical amounts of energy. He also echoes the committee’s sentiments, stating that the ban might be necessary to protect both the environment and people’s safety.
The proposed ban is also in line with a bill currently under review in the State Duma which seeks to regulate crypto-related activities. The bill seeks to introduce appropriate taxation for those engaging in digital currency mining, and under the new regulations, regional authorities would be granted powers to impose additional taxes on cryptocurrency mining.
The proposed ban is yet another step in the Russian government’s efforts to regulate the cryptocurrency sector. While the proposed ban is yet to be finalized, it is a clear indicator of the government’s stance on digital currency mining and its potential dangers. As such, it is important for crypto miners to stay informed on the latest developments and understand the potential implications of the proposed ban.