• Putin’s administration could persist with crypto-mining after facing economic problems.
• Regulators in Russia mandate crypto-mining companies to register themselves.
Recently the financial regulator in Russia announced that it has successfully finalized its crypto-regulatory plan and hopes to apply it immediately. According to reports, this crypto project addresses mining exploration and passive investments. The financial regulatory body looks to take advantage of the crypto market as its conflict with its neighboring country, Ukraine, continues.
Since 2021, cryptocurrencies have been on the radar of Russian financial regulators, who are exploring the many investment and profit opportunities the market offers. However, it has always faced an uphill task as regulators have always pushed back against it. However, the Putin government could set cryptos free with the new financial bill with these new reforms.
Problems between Russian banks and the presidency over cryptocurrencies
Since 2022, the Russian Federation bank has been hesitant about the crypto regulation bill, recommending a ban on the industry. Faced with such an opinion, the president of Russia, Vladimir Putin, and the Financial Secretary ordered the creation of a regulatory plan. Putin is not only attracted to cryptos but also the mining process for Bitcoin mining or other tokens.
After long months of negotiations, regulators and the government agreed to develop rules for the crypto market. This way will ensure safety rules for decentralized commerce within its territory.
Cryptocurrencies will be accepted as a form of remuneration and investment. Crypto exchanges that want to get involved in the plan must be regulated and comply with the regulatory standards in the country.
Crypto mining in Russia
The topics discussed peer-to-peer cryptocurrency operations and crypto-mining. Crypto-mining operations have been active for a long time, placing Russia as the third country with the highest compensation rate globally, competing with Kazakhstan and the United States.
Regulators indicated that companies interested in crypto-mining must apply for appropriate registration to begin operations. This is because the regulatory authority will offer the appropriate rate of return for mining Bitcoin.
This reform could attract new crypto investors to the country and foreigners who trust the crypto regulation bill. However, companies looking to get involved need to analyze a recent crypto plan.
Russian regulators have not discussed the interest they will charge for offering the remuneration index in crypto work, but the commission is expected to be low. It is also unclear what requirements will be requested for crypto companies to operate in the country. Meanwhile, the war between Russia and Ukraine continues to advance, with the Putin administration not making any friends at the point.