Amidst Central Bank’s mining prohibition in Russia there is a real debate.
The miners themselves are amazingly calm, as they understand the gist of the situation. The government would better regulate this field and get some money from the taxes, than just prohibit mining and lose potential income. In this article we’ll look out the facts and conclude, if mining in Russia is banned and what prospect we’ll face.
About the positions
Putin responded to the debate and pointed out, that in the mining field there are good prospects for Russia, and let both the authorities reach agreement. The government provided the development map of regulation mining in the country. It includes currency users’ verification along with the rules of interaction on Russian and foreign crypto platforms. Central Bank immediately insisted on the map’s further development in a strict way. But how will it end? We’ll see.
In the end of January Bloomberg’s anonymous sources revealed other details of Putin’s statements about cryptocurrency. He believes it’s necessary to legalize mining in several regions, where there is too much capacity:
• Karelia etc.
The surplus there is driven by high power hydroelectric power plants.
The President’s industry support will definitely play an important part and free crypto enthusiasts.
Is it possible to prohibit mining?
A great question is the technical side. The field of mining is really wide – it covers great companies and lots of particular miners. Though there are much more people, doing that privately. It’s difficult to monitor, who mine cryptocurrency, and that’s why some experts think, that legal measures won’t affect this industry.
Of course, miners can be detected under huge values of consumed energy. But the enterprising crypto enthusiasts found the solution: usually they mine not at home, but at some places, where the energy is used in large amounts – for instance, in factories and plants. This side of mining is completely hidden.
The influence on other countries
Cryptocurrency is a global question. If mining in Russia and all the operations with cryptocurrency are really prohibited, the whole world will feel it. Russians mine more than 11% bitcoins every year. The country is among the leaders in the trade and profit on cryptocurrency.
Apparently bitcoin will go down for some time, and along with that the rest of the crypto market, as it is connected to the main cryptocurrency. But soon it will be recovered – after the Chinese crackdown the recovery took less than two months, though in China the mining ratio was much bigger. It’s important to note, that the possibility of prohibition crypto work in Russia is being discussed for several years, and the solution isn’t found. Every this or that regulator’s comment is being discussed on the Internet, and sometimes the information is quite controversial.
All in all, the experts think, that Russia won’t follow the Chinese way and won’t forbid crypto industry completely, including mining. It’s wiser to control it and get some income from the taxes – that’ll be useful for all the sides. At least, technical aspects of mining make it really complicated to ban.