Russian lawmakers have decided to resubmit a bill that would regulate cryptocurrency mining. The draft law, which was first proposed in December of last year, has been facing opposition from environmentalists and some members of the lower house. In an effort to combat cryptocurrency mining and the energy consumption it produces, the Russian government is planning to introduce a ban on residential mining.
Russian Gov’t Puts Off Regulations to Legalize Mining Cryptocurrencies
The Russian government has postponed the adoption of regulations designed to legalize the mining of cryptocurrencies. This is a difficult process, as most government institutions in Moscow remain opposed to allowing crypto payments inside the country. Russian legislators and other officials are still mulling over how to regulate crypto-related operations, while mining of cryptocurrencies is still considered a illegitimate business activity in Russia.
Russians plan to ban cryptocurrency mining in residential areas after struggles with energy consumption
Since the popularity of cryptocurrencies exploded in early 2017, Russian legislators have been working on a bill that would regulate the mining of these virtual assets. In December, the Russian State Duma (lower house of parliament) postponed its planned adoption of the proposed legislation after amendments were made to it. However, this week, sources in the Russian government indicated that they are preparing to reintroduce the bill in its original form.
If approved, the legislation would prohibit the advertising or other forms of promoting cryptocurrencies to an unlimited audience. Additionally, miners would be required to register with the government and obtain a license. They would also be liable for any damages or losses caused by their operations. These measures are seen as necessary to protect ordinary Russians who are mining cryptocurrencies at home, as well as to protect electrical grids and other infrastructure from damage.
This year has been especially challenging for cryptocurrencies, with prices dropping below $6,000 for the first time since early 2018. Many ordinary Russians have turned to cryptocurrencies as a way to make money, but this has led to problems. Mining cryptocurrencies has become a popular at-home activity, but it has also been blamed for breaking down homes and causing fires. In response, Russian lawmakers are proposing to ban mining in residential areas. If this proposal is approved, it would be the first country in the world to do so.
According to Russian lawmakers, they will be resubmitting a bill to regulate cryptocurrency mining in order to try to solve some of the energy consumption struggles that have arisen as a result of the surge in popularity of cryptocurrency mining. The original bill was put off earlier this year, but due to the recent surge in popularity of cryptocurrencies, there is a renewed push to pass it. If passed, the bill would ban cryptocurrency mining in residential areas, as well as introduce liability for “gray” miners – those who mine cryptocurrencies without officially registering with the government.