Bitcoin [BTC] and other cryptocurrencies have managed to garner the attention of the entire globe particularly during the war. After receiving crypto donations in abundance, Ukraine went on to legalize the use of crypto in the country. Russia wanted to be a step ahead. As a result, the government seemed to be eyeing the legalization of crypto mining.
Last week, the Russian energy committee affirmed that the country was considering accepting Bitcoin for its natural resource exports. Now, more recently, it was brought to light that the Russian Deputy Energy Minister was yearning for the legalization of Bitcoin mining. Minister Evgeny Grabchak wanted the government to legalize cryptocurrency mining “as soon as possible.”
Considering the abundant natural resources that Russia produces, it could be a significant location for Bitcoin mining. Therefore, the Deputy Energy Minister intends to mitigate the legal “vacuum” that has been acting as a barricade.
Speaking to a local news portal, TASS about Bitcoin mining, Grabchak said,
“The legal vacuum makes it difficult to regulate this area and set clear rules of the game. This legal vacuum needs to be [eliminated] as soon as possible. If we want somehow to get along with this activity, and we have no other options in the current reality, we must introduce legal regulation, adding the concept of mining to the regulatory framework.”
Is this Russia’s way of avoiding sanctions?
Russia has been trying to legalize Bitcoin mining for quite some time now. However, the sense of urgency appears to reach a boiling point at the moment. Russia is currently being suffocated by sanctions from all corners of the globe. Governments have underlined how Russians may use crypto to circumvent sanctions. As a result, cryptocurrency exchanges have limited Russians from using it.
Bitcoin mining benefits have attracted a diverse group of people to the sector. Russia’s plan to fast-track crypto-mining legalization could be motivated by turning profitable revenue. It was even suggested that the Vladimir Putin-led government would be turning to cryptocurrency mining in order to avoid sanctions. However, these remain community speculations, and the larger narrative remains uncertain in Russia with respect to crypto mining and regulations.