To sign up for our daily email newsletter, CLICK HERE
Introduction
Russia has become a leading country today in terms of crypto mining. The cheap cost of electricity supply in Russia coupled with the availability of mining equipment at a cheaper rate too; has also boosted mining within the country.
Amidst the growing number of miners in Russia today, its lawmakers have pushed a bill to legalize mining within the province, and to further give miners the freedom to sell their digital assets including Bitcoin, Ethereum, Cardano, Dash, etc, at the Russian markets after mining, without any obstruction.
This has positioned Russia as a leading crypto-friendly nation today. Will the new law benefit crypto miners in Russia today? How will this affect crypto trading within the country? Can Russia become the largest crypto miners by 2023? This work has examined these important questions.
What is crypto mining?
Crypto mining is an important activity where miners gather to solve complex math puzzles on a blockchain; which serves in validating transactions on the network. This process leads to the creation of new blocks which are added to the existing Blockchains. New cryptos are created each time a new block is added to the Blockchain, and this serves as the miners reward for the work done on the blockchain.
Proposed bill on the regulation of crypto mining in Russia
Russia recently passed a bill in November on the regulation of crypto mining within the province. This bill which was submitted at Duma is one meant to allow miners to go about their activities freely within the province, and as well be able to sell their digital assets after mining at the Russian exchange markets.
The bill has also provided a legal framework for defining crypto mining and mining pools in Russia today.
Here, the bill defined crypto mining as activities that lead to the creation of new cryptos, by carrying out mathematical calculations using computing devices and softwares which makes it possible to enter information on a distributed ledger.
The bill further gave miners the right to sell their digital assets after mining at the Russian markets. As stated in the bill: all digital currencies obtained from mining can be disposed of by the persons who carried out the mining as long as the Russian information infrastructure has not been used in carrying out such mining activities.
Added to this, the bill further indicated that all digital assets sold on the foreign exchange platform are exempted from the provisions of the law on currency regulations.
This means miners can either choose to sell their digital assets on the forex exchange platform without being subjected to the laws on currency regulations or choose to do so at the Russian exchange markets.
Above all, the bill pushed for a ban on running different adverts for digital assets except for mining.
Is the Russian Pending Crypto Mining Bill a relief for Crypto Enthusiasts?
The pending bill on the regulation of mining activities in Russia which has been designed to provide more freedom for miners, could be considered a great relief for crypto enthusiasts in Russia today. Thus, the new bill, once passed; will make it easy for miners to sell the end products of their mining activities in the Russian markets without any hindrance.
With this new bill put in place, we can further expect an increase in mining activities in Russia.
The volume of crypto transactions carried out in Russia will be impacted too especially as more miners bring their proceeds to the market for sales.
Above all the proposed bill has further positioned Russia as a crypto friendly-country today.
