Putin Wants Crypto Regulation In Russia Instead Of A Proposed Outright Ban

Putin says that a surplus of electricity and well-trained personnel give Russia a “competitive advantage” in crypto mining.

Russian President Vladimir Putin seems to be on the side of the crypto community when it comes to the future of cryptocurrencies in the country.

The mining of digital assets has come under high scrutiny by Russian authorities. However, a glimmer of hope is coming from Putin, who recently said crypto mining has its advantage in Russia.

He started the video conferencing with members of the Russian government by addressing the regulation of cryptocurrency, “an issue that is currently in the spotlight” in the country.

Russia’s Power Supply Is An Advantage For Crypto Mining

He noted that the country has an advantage over some other regions when it comes to the use of power for mining. Putin was referring to the surplus of electricity and the availability of well-trained personnel for the digital industry.

A 2021 analysis revealed that the price of electricity is $0.08 for business and $0.06 for household use. However, in comparison with France, one kWh of electricity for business costs $0.14 while households pay $0.2 for household use. It shows that the price costs four times what is obtainable in Russia.

Putin Calls For A Consensus On The Use Of Crypto

Putin also addressed the regulatory issues of using cryptocurrencies in Russia. He called on the central authorities to meet with the government to address the discrepancies and find a working modality regarding cryptocurrency use.

This is coming only a week after the Russian central bank published a proposed blanket ban on domestic mining and trading of cryptocurrencies.

The central bank has clearly shown its resentment regarding the trading and mining of digital assets in the country. The apex bank pointed out the financial and economic risks in the industry, as it tries to protect the interest of investors. However, Ivan Chebeskov, Russian Finance Minister, opposed the proposal, saying that a regulation will be better than an outright ban.

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