NewsRussian Central Bank: Crypto Mining Is OK - Under...

Russian Central Bank: Crypto Mining Is OK – Under One Condition

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Russia is coming out with crypto news again. Since the sanctions imposed by several countries, the country is trying to find other options to save itself. Bitcoin is one of the options to make Russia independent.

This is what the country is trying to make as attractive as possible, and one of these actions is to make bitcoin VAT-free. This is not to be nice to Russian citizens, but it is part of a larger plan. Russia sees bitcoin as a way to break economic isolation. And that includes mining.

RELATED: Russian Duma has approved a bill to stop charging VAT on cryptocurrency

Sales to foreign countries only

For this reason, the country also wants to legalize crypto mining. This would allow miners to safely mine in the country, but there is a catch. In fact, a financial official of Russia has one requirement for these miners: the mined crypto must then be sold to foreign countries. But why?

Kirill Pronin of the Russian Central Bank (CBR), has acknowledged this legalization of crypto mining under these conditions. It is remarkable that the CBR is considering this at all, because this bank is normally not really a fan of crypto.

On the other hand, payment traffic with foreign countries is restricted because of the war, so Russia has to look for solutions. That could be bitcoin, but you don’t want bitcoin to turn payment traffic domestically upside down, that’s how Pronin saw it.

Related: Russia’s β€œhidden” weapon against sanctions: parallel system of international payments based on cryptos

Domestic crypto payments not motivating

Therefore, the requirement to miners is as follows: the mined crypto must be sold to foreign countries. Indeed, it must not become a replacement for the ruble.

“Despite the fact that we consistently speak out in favor of banning the turnover of cryptocurrencies […] the discussion on the legalization of mining is possible,” Pronin said.

“Ultimately, we have to say that there should be an export of these mining services, and the mining activities should not lead to accumulation of cryptocurrency in the country, so that there will be no motivation for further use in internal payments.”

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