A while back it was announced that the Central Bank of the Russian Federation (CBR), the country’s primary financial regulator plans to ban the use, mining, and trade of cryptocurrencies. In just a few days, it has come to the surface that the Russian president, Vladimir Putin has opposed the proposal. Instead, he has recommended the taxation and regulation of cryptocurrency mining to take advantage of the surplus electricity available in various regions of the country.
Kremlin spokesman Dmitry Peskov declined to comment on Putin’s position, instead stating that he has ordered the government and the central bank to resolve their differences. It’s worth noting that the Central Bank of Russia continues to oppose mining on environmental grounds.
Russia is the world’s third-largest cryptocurrency miner in 2021, after the United States and Kazakhstan, according to data shared by Cambridge University in October.
Putin’s endorsement, combined with his public statements this week, means that cryptocurrencies will continue to be mined in Russia, albeit with government taxation and regulation. Yesterday, Putin called for the government and the central bank to come to an agreement soon on how to regulate cryptocurrencies.
We also have certain competitive advantages here, especially in so-called mining. I am referring to the surplus electricity and the well-trained staff available in the country.
Vladimir Putin, Russian President
Source: Bloomberg