The central bank is ready to legalize cryptocurrency mining…but on one condition

Cryptocurrency news continues to grab the headlines. In the face of inflation, some countries turn to these assets which they consider the currency of the future. In Russia, the government faces several simultaneous problems. In addition, the war meBorn Against Ukraine is prompting him to reconsider his judgment on cryptocurrency. Thus, the central bank is ready to accept the legalization of cryptocurrency mining, provided that certain rules are respected.

While many countries have already adopted cryptocurrencies, others are afraid of them and do not want to hear about them. Russia is in the second category and intends to stay there. At least until last month. In fact, the Russian government is starting to see the possibility of legalizing cryptocurrency mining. However, the process requires certain conditions that must be met if it is to be successful.

The head of the financial technology department of the Bank of Russia, Kirill Pronin, recently made a statement. According to him, the Central Bank of Russia (CBR) is now ready to accept the legalization of cryptocurrency mining. But to do this, the miners are forced to sell the coins from the extraction outside the country. Governor Elvira Nabiullina shares her view. Last month, I argued that crypto payments could be allowed. But on the condition that the Russian financial system is not hacked.

Another entry is also issued. In fact, the conservative believes that high volatility of bitcoin can harm potential investors. For this reason, she insists that it should not be traded on Russian platforms. Pronin spoke again at the Saint Petersburg International Legal Forum this week.

The head of the fintech department noted that although cryptocurrency mining is not the responsibility of the Bank of Russia, it is an effective way to obtain cryptocurrencies in the form of fees. These will be used to validate crypto transactions made by miners.

Russian crypto exchange platform to provide liquidity to the industry?

Members of the lower house of the Russian parliament want to recognize crypto mining as a business using existing equipment in the country and Russia’s information infrastructure. Some Russian-based mining companies face foreign restrictions when withdrawing funds. For this reason, the director of the Financial Policy Department of the Ministry of Finance, Ivan Chepskov, suggests that the Russian Federation should create its own exchange infrastructure in order to provide liquidity to the industry.

Remember, the idea is not in itself a bad idea when you know that Russia is in the crosshairs of the European Union. Since the beginning of the war against Ukraine, the Russian Federation has been subjected to many foreign sanctions. Therefore, the creation of a Russian crypto exchange platform may allow the country to free itself from the yoke of foreign powers. As Kirill Pronin aptly said, the use of coins minted by later miners in national countries should be avoided.

The war between Russia and Ukraine is prompting Moscow to reconsider its consideration of cryptocurrencies. In fact, after banning cryptocurrency mining and all crypto-related activities earlier this year, Russia is now considering legalizing crypto mining. However, this process is subject to conditions that miners must take into account if they want to carry out their activities.

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Eddie Senga's Avatar

Eddie Senga

The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and introduce a field that fascinates me, nothing is better than writing articles that are useful and comfortable at the same time.

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