The changing economic and geopolitical environment, along with the differences in opinion between different government institutions has hindered the process of crypto mining regulation in Russia.
According to a report, these factors are standing in the way of the development of the required legislation to oversee crypto mining.
Even though the crypto market is undergoing a downturn, crypto mining activities have continued to flourish in Russia.
The huge country was given the fifth position in the list of mining destinations in the world at the start of the year, as it offers suitable climatic conditions and abundant energy resources.
According to a recent report, there has been an increase in the amount of electricity used for powering crypto mining farms in Russia by about 20 times in the last five years.
Last year, the amount of electricity consumed for the mining of bitcoin (BTC) alone stood at 1.25 gigawatts.
This shows that the amount of energy that is consumed by the crypto mining sector in Russia is equal to that of the consumption of its agricultural sector.
However, as crypto mining is still not regulated in Russia, it means that this activity is still happening in the gray economy.
Crypto mining bills
There have been two bills drafted so far that are aimed at legalizing the crypto mining business, but they have still not received approval from the government.
Only once they have been approved will the lawmakers get an opportunity to consider the bills. The first draft had been filed in the lower house of the parliament called State Duma in April by the New People party this year.
However, the bill in question had received a negative assessment from the house’s legal department because of which it had been withdrawn.
The next month, an amended version of the bill had been resubmitted by the liberal faction, but it was rejected once more.
The executive power also developed another piece of legislation. As it was the Ministry of Finance that prepared the bill, it has better chances of approval.
But, the Central Bank of Russia (CBR) has opposed the legalization of crypto in the country and has proposed a blanket ban be issued on all things crypto.
No unified position
According to experts, the primary reason that Russia has not yet adopted a mining law is that the various authorities lack a unified position.
It could take a long time to develop rules that would satisfy all government bodies. Earlier this year, President Vladimir Putin had urged the government and CBR to reach a consensus where crypto regulations are concerned.
He also highlighted the benefits of Russia as a mining destination. Experts have also said that it is better to adopt a single comprehensive bill like the draft law ‘On Digital Currency’ by the Finance Ministry.
Adopting several laws that are aimed at crypto mining does not make sense. Moreover, it is essential to regulate crypto mining as well as crypto circulation in Russia.