Cryptocurrency mining should be allowed in areas with excess energy and prohibited in those that experience deficits, according to Russian officials preparing to legalize it. An expert from the crypto industry has recently marked the regions where Moscow is likely to authorize mining and the ones where it will probably ban the extraction of digital currencies.
Expert Lists Russian Regions Most Suitable for Crypto Mining and Those Expecting Ban
The Central Bank of Russia and the Ministry of Finance recently agreed on legislation designed to regulate the mining of cryptocurrency that should be adopted by the end of this year. Lawmakers working to finalize it have indicated that the industrial activity should be permitted only in parts of the vast country that can produce more electricity than they need.
One of them, the Chairman of the parliamentary Financial Market Committee Anatoly Aksakov, also said that the energy-intensive process should be banned in other areas facing power shortages. The deputy assured that the respective bill will be filed with the State Duma in the near future and also called for the simultaneous regulation of mining and cryptocurrencies.
The idea to authorize the minting of digital coins only in regions with a steady surplus in electricity generation is not new. A proposal in the same direction was made by the Russian Ministry of Economic Development in February, when the department also suggested introducing “acceptable” electricity rates for miners.
Roman Nekrasov, co-founder of ENCRY Foundation, which represents IT companies providing services in the field of blockchain and tech innovations, has shared with RBC Crypto his expectations about which Russian regions are most likely to be allowed to host crypto mining operations. He also listed those where miners will hardly be welcome.
Mining will be permitted in regions with hydroelectric and nuclear power plants, he told the crypto news outlet, which have been already populated with cryptocurrency farms for several years now. These include Irkutsk Oblast and Krasnoyarsk Krai, which have many hydroelectric power plants, as well as Tver, Saratov, Smolensk, and Leningrad regions, with their nuclear power plants.
The minting of digital currencies will probably be banned in the capital Moscow and the adjacent Moscow Oblast, Belgorod Oblast, and Krasnodar Krai, which have historically been energy-deficient, Nekrasov explained. He also expects the crackdown on illegal mining facilities in Dagestan to intensify. The Russian republic is another region with insufficient electricity supply where mining has spread as a popular source of income amid high unemployment.
The crypto industry expert also thinks Russian authorities could allow the extraction of cryptocurrencies in Karelia. However, this could happen under certain conditions such as requiring mining enterprises to support the construction of small hydropower plants, Roman Nekrasov remarked. Karelia was listed among the most popular crypto mining destinations in Russia in study released earlier this year.
Do you expect Russia to allow mining only in its energy-rich regions? Share your thoughts on the subject in the comments section below.
Source: Mining Archives – Bitcoin News
Breaking News: Yuga Labs Founder Steps Down for Health Reasons
NFT Entrepreneur and Yuga Labs founder Wylie Aronow, creator of Bored Ape Yacht Club and CryptoPunks, Takes Time Off for Health.
NFT Entrepreneur and Yuga Labs founder Wylie Aronow, creator of Bored Ape Yacht Club and CryptoPunks, Takes Time Off for Health after CHF Diagnosis.
Yuga Labs Founder Steps Down
Wylie Aronow, one of the co-founders of Yuga Labs, recently announced that he will be taking a leave of absence from the company due to health reasons. In a tweet, he shared that he had been diagnosed with congestive heart failure. Aronow, who is also known by his pseudonym Gordon Goner, stated that the symptoms started last year and that he had delayed seeking medical attention so he could continue working. However, after undergoing testing, his doctor advised him to make significant changes to his lifestyle.
Aronow announced his departure from his role at Yuga Labs to focus on his health. In a statement, he stated that he would be taking a leave of absence to prioritize his well-being. Although he will no longer have a full-time position at the company, Aronow will continue to serve as a Board Member and Strategic Advisor, though the extent of his involvement in these capacities was not specified.
In a tweet, Aronow explained his departure. He stated that his chronic illness consumed most of his twenties and that he overexerted himself at Yuga Labs, working 12 hours daily. He regrets not finding balance, despite advice from those around him. Aronow’s priority now is to seek medical treatment and focus on healing.
Yuga Labs, with Aronow, gained recognition in early 2021. Aronow and co-founders Greg Solano (Gargamel), Zeshan (Sass), and Kerem (Tomato Ketchup) launched the Bored Ape Yacht Club (BAYC) NFT collection on April 23, 2021. The collection became a massive success. Although the NFTs were initially priced at .08 ETH per ape (around $190), they soon sold for over $100,000 on secondary markets.
Wylie remains a board member and advisor at Yuga Labs. In a Twitter thread, he expressed his confidence in Yuga’s future and the leadership of @cryptogarga. The addition of Daniel Alegre, soon-to-be former President and COO of Activision, further strengthens his positive outlook. Wylie also has a bright future ahead for his brand.