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Crypto mining could be Legalized in Russia– After fulfilling Bank of Russia’s these Conditions

source-logo  thecoinrepublic.com 04 July 2022 14:30, UTC

The Central Bank of Russia that earlier wanted to put a ban on crypto and its operation is now thinking over the same with a fresh perspective

The Russian Monetary Authority is preparing to bring back the crypto mining activities in the region after legalizing them again, but here some conditions will be applied. The condition would be that Russian miners would need to sell the crypto assets that they acquire during the mining process, outside of Russia. 

As per the recent statement of Financial Technologies Department head at the Bank of Russia, Kirill Pronin, Central bank of Russia has been one of the strongest voices during the discussions on cryptocurrencies’ future in Russia. Following the same, the bank has even proposed to put a ban on cryptocurrencies and most operations related to them, from transferring them to their mining. 

But while outlining the changing stance of Bank of Russia, Pronin said that its position regarding the issues has started to shift given different reasons including facing resistance from several government institutions. This decision is also getting affected due to the need of dealing with the sanctions and financial restrictions that were imposed on Russia during the war with Ukraine. 

Last month, Governor of the Bank of Russia, Elvira Nabiullina, made some statements showcasing the flexible perception of banks towards cryptocurrencies, when she said that as far as crypto payments don’t penetrate or make any effect on the Russian financial system, the can be allowed. However, at the same time she also expressed her concerns about bitcoin-like cryptocurrencies trading on Russian platforms. She insisted this should not be done given the volatility and risk involved. 

Pronin was attending the St. Petersburg International Legal Forum, where he noted that although the Bank of Russia could not have any direct involvement or responsibility about crypto mining operations, this can be treated as yet another way to generate cryptocurrencies. He further said that there are some points that need to be discussed first in order to legalize crypto mining in the region. 

Meanwhile, Financial Policy Department of Finance Ministry’s director, Ivan Chebeskov explained that several large scale Russia based crypto mining companies have been pressurized in order to deal with the restrictions put by foregin countries while withdrawing funds. He also suggested that there is a need for Russia to create its own infrastructure for exchanges that would help to provide liquidity.