Now as the situation in Ukraine rages on, the idea of Russia, which is wealthy in energy, using Bitcoin mining to alleviate the consequences of ever-tougher sanctions is gaining traction.
According to a TASS article, Russia’s Deputy Energy Minister Evgeny Grabchak declared on March 26 that the legal vacuum in crypto mining must be filled..
Grabchak argued that deciding on mining areas and releasing energy resources for miners at the regional level, rather than at the federal level, would be more successful, and that this should be guided by regional development plans.
The Deputy Energy Minister further stated that the “as soon as possible” legal hole in cryptocurrency mining must be filled.
“The legal vacuum makes it difficult to regulate this area and set clear rules of the game. This legal vacuum needs to be [eliminated] as soon as possible. If we want somehow to get along with this activity, and we have no other options in the current reality, we must introduce legal regulation, adding the concept of mining to the regulatory framework,” Grabchak stated.
Last week, Russian State Duma member and chairman of the Energy Committee Pavel Zavalny proposed Bitcoin and national currencies as payment options for energy exports to “friendly nations.”
In response to President Vladimir Putin’s previous insistence that “unfriendly countries” use the ruble for such transactions, Zavalny proposed gold and Russia’s currency, the ruble, as payment options for the country’s energy exports, which the EU declined.
Despite the fact that Ukraine has authorized cryptocurrency and received financial aid in the form of digital assets, some industry experts are concerned that Russia would utilize bitcoin to evade financial and economic sanctions.
Russia’s central bank has granted Sberbank, the country’s largest bank, a license to trade in digital assets, after pushing for a cryptocurrency ban prior to the invasion of Ukraine.