The director of the Industrial Mining Association, Sergey Bezdelov, at the Industrial Mining session of the Eastern Economic Forum (EEF-2024), recently made a revelation about bitcoin mining in Russia.
According to Izvestia, a Russian media outlet that covered his speech, he stated that in 2023 alone, 54 thousand bitcoins were mined in Russia, which brought about 50 billion rubles (approximately $550 million) in taxes to the state treasury.
He stated that with proper regulation and current market conditions, investors will be attracted to Russia to take advantage of the new laws. He reiterated that new infrastructure projects will draw in additional investors.
In August, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in the Russian Federation starting in November. The Ministry of Digital Development, along with registered Russian legal entities and individual entrepreneurs, will also have the right to engage in mining.
In addition, citizens who do not have enterprises but wish to be part of Bitcoin mining will be permitted to engage, but within the energy consumption restrictions imposed by the government.
After being included in the register of operators for mining infrastructure, which is likewise kept by the Ministry of Digital Development, they also have the right to function as operators for mining infrastructure.
It is important to note that the government, together with the Central Bank of Russia, will have the right to enforce the requirements for individuals and firms that wish to mine Bitcoin in the country.
Furthermore, the government and the Central Bank of Russia can introduce a ban or restrictions on activities in certain regions due to the energy consumption for that region.
This law put in place by the Russian government can foster an inflow of bitcoin maximalists as well as enthusiasts as it should create an enabling environment for bitcoin mining.
Russia, by positioning itself as a player in the cryptocurrency market, aims to strengthen its financial sector and enhance its global competitiveness.
With the law in place and set to roll out from November 2024, it is expected that the revenue generated for the nation from its Bitcoin mining will increase beyond that generated in 2023.
