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Putin Backs Bitcoin Mining in Russia: Report

Russian President Vladimir Putin is reportedly backing a government proposal to encourage bitcoin mining in the country through clear tax and regulatory measures, rather than following the central bank’s recommendations to ban the activity altogether. According to a report from Bloomberg, the Russian government tends to oppose radical action and instead seeks to promote a healthy bitcoin mining industry by proposing a new set of legislation aimed at taxing farms that have flocked to the country in the past year. and regulate. Three people familiar with the matter told Bloomberg that Putin supports the government’s stance, while the Bank of Russia has recommended that the country ban citizens from trading and mining cryptocurrencies over concerns that the activity would pose certain risks. can bring. “The president’s support, combined with his public comments this week, mean the proposals are likely to be approved,” according to the Bloomberg report. Putin at a Wednesday meeting with government official ials acknowledged the central bank’s position, but emphasized that Russia had some Bitcoin mining had “competitive advantages” given its “overpowered power and well-trained manpower,” according to a translated version of a Kremlin statement. The president also asked the government and the central bank to reach an agreement on cryptocurrency. Russia’s finance ministry on Tuesday discouraged the country from pursuing a full-blown cryptocurrency ban as proposed by the Bank of Russia, warning that such a move could backfire and lead to a stalled Russia in terms of security. innovation in the technology industry “We should regulate, not ban,” said the director of the financial policy department of the Ministry of Finance, Ivan Chebeskov, Tuesday. While Putin is mainly in favor of allowing bitcoin miners to operate in the country, the three people familiar with the matter also told Bloomberg that the Russian president “supports the proposal to limit mining to regions with a surplus of electricity, such as Irkutsk, Krasnoyarsk and Karelia.” the country’s energy surplus led it to become a hotbed for bitcoin mining after a Chinese ban on the activity last year caused an exodus of miners from the Asian country, most of whom found new homes in the US, Kazakhstan and Russia. .
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