The deputy minister asserts that mining operations’ quotas and allocations should be determined by regional authorities, not the federal government.
Evgeny Grabchak, Russia’s Deputy Minister of Energy, advocated ending the country’s legal vacuum around crypto mining and instituting unambiguous legislation. This comment continues a recent trend of government officials expressing support for the cryptocurrency business.
Grabchak, speaking at the first national meeting of legal crypto miners in Irkutsk on Saturday, emphasized the importance of quickly establishing a regulatory framework for the sector:
“The legal void makes it impossible to manage this sector and establish clear ground principles. This legal void must be [eliminated] immediately. If we are to coexist with this activity, and we currently lack other options, we must enact legal legislation, incorporating the notion of mining into the regulatory framework “‘.
Additionally, the deputy minister stated that it would be appropriate to delegate authority for mining sites and possible energy quotas to regional authorities rather than federal equivalents. “Perhaps it should be coordinated with the growth strategy of the regions and other industry sectors,” he added.
Grabchak’s statement places mining in Russia’s strategic context. Additionally, he expressed his skepticism about the market’s ability to govern the quantity and allocation of mining operators. Earlier this month, on March 21, Vice-Premier Aleksandr Novak indicated that legalizing mining would be “logical.”
These sentiments add to the chorus of support for the crypto business following the Central Bank of Russia’s (CBR) surprise onslaught in January when it called for an outright ban on mining and trade.
In March, a working group of the lower chamber of Parliament recommended “clear regulation of the digital assets market” as the most effective way to mitigate the dangers connected with cryptocurrency adoption in the country.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.