• International sanctions are driving crypto adoption in Russia.
• Russian lawmakers are attempting to pass legislation that would legalize crypto mining in the country.
• The Central Bank has repeatedly called for a ban on crypto, but pro-industry forces in the government remain opposed.
International sanctions have caused a surge in crypto adoption in Russia, according to Yuri Myshinsky, Chairman of the Board of the Digital Transformation Association. Myshinsky believes the sanctions will spur further adoption of cryptocurrencies in Russia.
Historically, Russia’s relationship with cryptos has been somewhat contradictory. The government has made various statements about the status of cryptocurrencies in the country, ranging from an outright ban to a willingness to embrace the technology. Now, Russian lawmakers are pushing a draft law that would legalize crypto mining in the country. This law would require industrial miners to pay taxes on their earnings.
The draft law has been met with enthusiasm from domestic energy producers, who are keen to set up data centers to mine crypto using associated gas at oil drilling sites. The Ministry of Finance is eager to use the law to provide Moscow with a revenue boost by legalizing crypto mining. However, the Central Bank wants to make sure that tokens mined during these operations are exchanged, and do not “enter the Russian economy.” The Bank has called for a ban on crypto, but pro-industry forces in the government remain opposed.
Myshinsky believes that this opposition could lead to further growth in the sector in Russia. He believes that the government is willing to embrace the advantages of cryptocurrencies, while imposing regulations on the industry. This could be good news for crypto investors and miners in Russia.
Time will tell how successful the government’s efforts will be in creating crypto-related legislation. But, for now, the outlook appears positive for the crypto sector in Russia. With international sanctions continuing to drive crypto adoption in the country, the next few years could be a very interesting time for the Russian crypto industry.