State Duma deputy stated Russia has prospects of leading the mining industry

According to Andrei Lugovoy, climatic conditions and the low cost of electricity may be contributing to this

27.04.2022 - 13:00

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What’s new? Andrei Lugovoy, a member of the State Duma working group on the legislative regulation of cryptocurrency believes that Russia may become a leader in digital asset extraction. In an interview with Parlamentskaya Gazeta, he noted that the Cabinet of Ministers’ upcoming laws should “bring millions of grey miners out of the shadows.”

Parlamentskaya Gazeta’s material

What else did Lugovoy add? According to the deputy, Russia ranks third in mining worldwide, 12% of the total volume of cryptocurrencies is mined in the country.

“Given Russia’s unique climatic conditions, electricity surplus, and its low cost, we can consider that our country has an opportunity to come first in the world in terms of mining,” Lugovoy explained.

Asked if cryptocurrency may become a full-fledged means of payment, Lugovoy said no. This position is shared by the government, the Bank of Russia, and lawmakers. According to the deputy, digital currencies should be defined as property.

He added that “the use of cryptocurrency for illegal activities is largely a myth.” Only 4-6% of the turnover of digital assets is involved in illegal activities. Lugovoy stressed that there are already effective tools to determine this.

What had happened before? Bank of Russia Governor Elvira Nabiullina reported that a systemic solution on the issues of mining is being prepared jointly with the Government of the Russian Federation. If it is adopted, an experimental regulatory regime and limits will not be needed.

Prosecutor General of the Russian Federation Igor Krasnov proposed to introduce cryptocurrency in criminal legislation. According to him, this will simplify the investigation of cases of theft of cryptocurrencies, as well as will make it possible to arrest digital assets.

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