Russia could be prepping to legalize Crypto Mining from home in the coming days, after realizing that banning it could be an arduous task.
Russia is gearing up to legalize and regulate crypto mining from the homes of the people of the country. Deputy director of Russia’s Financial Policy Department, Alexey Yakovlev recently admitted that executive a ban on crypto mining from home is a backbreaking task.
Why Russia Might Want To Legalize Crypto Mining From Home?
So, the official is now proposing to allow Russians to generate cryptocurrencies from their homes. The process of crypto mining requires advanced computers for solving proof-of-work algorithms.
Furthermore, there are multiple Crypto mining facilities within homes and garages in Russia. For instance, home-based crypto mining increased the consumption of power by four times in Irkutsk.
According to Bitcoin.com, the electricity rates in the area begin at $0.01 per kilowatt-hour (kWh). Now, Russian authorities are prepping to introduce new provisions that will propel home-based crypto mining activity straight into the legal arena.
As stated earlier, the crypto mining process drastically increases energy consumption, causing disruption in the electricity supply in the area. Aside from this, some governments have raised concerns over carbon emissions during the crypto mining process.
Russia Could Fetch Extra Income After Legalizing Crypto Mining From Home
However, President Vladimir Putin acknowledges that Russia has an advantage in crypto mining over other countries. It is will be important to eliminate the law applicable to crypto mining before officially recognizing the process.
Moreover, crypto mining is likely to fetch Russia extra income. To recall, Moscow allowed several regions to locally fix electricity rates in residential areas back in December 2021.
Utility companies and regional authorities could increase tariffs for household consumption to enable crypto mining. Furthermore, these higher tariffs are likely to surpass certain thresholds in a bid to bring finances to the country’s treasury.
In the meantime, multiple western nations continue to impose financial sanctions on Russia, citing the country’s attack on Ukraine. To combat this, the government legalized the piracy of games last month.
Also, these sanctions have cut off the Russian economy from a seamless inflow of money. Now, it looks like Russia is deviating its focus to the crypto sector, despite trying to ban it in early 2022.
Russia even started accepting Bitcoin as a mode of payment for its natural gas on global energy markets. Likewise, the country’s CBDC Digital Ruble is currently in the trial stage before getting approval for regular usage.
