While the Russian government continues to develop a regulatory system for digital assets, the Federal Ministry has made another proposal regarding the crypto-mining industry.
Russia’s Ministry of Economic Development has given the green light to the concept of regulating cryptocurrency mining in the country and is proposing to allow mining in regions with a “sustainable surplus of electricity production,” local news agency Izvestia reported on Tuesday.
As part of the proposal, the ministry proposed introducing lower tariffs for setting up mining farms and data centers in certain regions of Russia, as well as offering discounted electricity prices for such facilities.
The ministry also wants to put an end to the energy consumption of mining for individuals and is said to be proposing to introduce higher energy prices to increase energy consumption. The report said that the authorities have not yet set a limit for this purpose.
According to the ministry, the newly proposed rules will remove the risks of insufficient energy supply to residential buildings, social facilities and infrastructure in other regions of the country.
In addition, the ministry is reported to have proposed recognizing cryptocurrency mining as a business and taxing the profits made from cryptocurrency mining.
The ministry did not immediately respond to Cointelegraph’s request for comment. This article will be updated with new information pending.
Related: Russia’s Region Struggles to Keep Up with Bitcoin Mining Energy Needs
The latest proposal comes amid ongoing uncertainty over cryptocurrency regulation in Russia, as various parts of the government are still arguing over how to regulate Bitcoin (BTC).
As previously reported, the Russian Ministry of Finance called for regulation of the cryptocurrency industry, while the Bank of Russia insisted on a ban on cryptocurrency transactions, citing the risks of protecting investors. When the government formally approved the concept of crypto regulation on February 8, Bank of Russia CEO Elvira Nabiullina later stated that the bank did not support the government’s decision and would continue to oppose the introduction of cryptocurrencies in Russia.
The government and the central bank are expected to present a joint bill on regulating cryptocurrency by Friday.
See also: The Central Bank of the Russian Federation has registered the country’s first digital asset manager
Some large state-backed financial institutions in Russia have recently supported the idea of regulating cryptocurrencies in the country. It is reported that Anatoly Popov, deputy chairman of the board of directors of the Russian banking giant Sberbank, expressed his support for the company in terms of regulating the industry rather than banning it.
Our position coincides with the position of the authorities that cryptocurrencies should be regulated, not banned. There is a need for effective regulation that would allow citizens and organizations to obtain cryptocurrencies legally, while observing anti-money laundering and tax mechanisms.”