Russia to legalize Crypto Mining Soon

Argoo

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Quote from: kryptqnick on March 31, 2022, 03:20:35 PM

Well, given how strongly the Russian economy is being hit by sanctions right now, it's no secret that Russia needs everything it can get to compensate for this change. Not to mention the oil and gas embargo by the US, which is setting an example, while selling these resources is the backbone of Russian economy. I wonder if it'll actually get adopted, though. Another thing I wonder is how many businesses would actually want to be in Russia now, including mining farms, given how fast it's going in the direction of North Korea. Even many Russians (at least around 200 thousand people), especially educated ones, are fleeing the country.

The current political leadership of Russia is not at all interested in the legalization of cryptocurrency. On the contrary, they are trying with all their might not to issue currency from their country. If the cryptocurrency is legalized, then the capital in the form of cryptocurrencies will massively begin to leave Russia with its depreciating ruble.
At the same time, Putin and his entourage, even in the current situation, can use cryptocurrency to try to circumvent international sanctions. The absence of a special law regarding cryptocurrency is not a hindrance for them. But cryptocurrency will not help Putin much either. The fact is that not only capital is monitored, but also the goods for which they are bought or sold.

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Well, given how strongly the Russian economy is being hit by sanctions right now, it's no secret that Russia needs everything it can get to compensate for this change. Not to mention the oil and gas embargo by the US, which is setting an example, while selling these resources is the backbone of Russian economy. I wonder if it'll actually get adopted, though. Another thing I wonder is how many businesses would actually want to be in Russia now, including mining farms, given how fast it's going in the direction of North Korea. Even many Russians (at least around 200 thousand people), especially educated ones, are fleeing the country.

Fortify

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Quote from: Vaskiy on March 28, 2022, 06:27:29 PM

Russian Deputy Minister of Energy Evgeny Grabchak revealed statement about introducing clear regulations for crypto mining in the country. His statement served as a support for the cryptomarket and the miners within the country, because back in January cryptocurrency mining was banned in Russia.

During the first national conference of legal crypto miners Grabchak called for introducing a regulatory framework for the sector at the earliest. In his statement he added

Quote

"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".

Russian government to legalize mining soon

Even if Russia offered free electricity and delivery of your equipment into their country, it would be a terrible idea to take up any sort of contract that was subject to Russian laws. This latest war by Russia on Ukraine is the most shocking example of how erratic the leadership of Putin can be. It's hard to trust a single word that comes out of their government officials and even if you did trust them, there is every possibility that you could get squeezed out by criminal elements which are pervasive all over the country. Any assets within the country are subject to arbitrary seizure or nationalization if things look to be going bad for them. While a few Russians who can navigate this treachery might make a bit of cash, any foreigners would be well advised to keep their hardware out.

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Quote from: Lucius on March 30, 2022, 04:46:11 AM

Quote from: suzanne5223 on March 29, 2022, 10:28:46 AM

Well said. I believe most crypto investors are happy about this news because it will help the price of the market and also give Bitcoin more reputation but they never give it a thought if the decision will help common people living in the country and how true is the news because the current invasion that happened between the country in the subject make me know how fake news is shared from them and this make it hard for me to know what's really going on there.

In the short term, yes, but in the long term, things like this can only damage that reputation - because if Russia starts using Bitcoin (which I personally don't believe), it would be a reason for even stricter regulations and possible bans. At the moment, Russia has much bigger problems than dealing with such trivial things - it would be ideal for them to do something similar to China, so that we get rid of any doubts about what they think or want to do.

You make a point that the Russian government's plan about using of Bitcoin will be a reason for stricter regulations but there won't be a ban (though some governments will never support the idea of Bitcoin) caused a lot of influencers and celebrities are already into Bitcoin lately.
Let's be honest with ourselves if the Russian government didn't use Bitcoin, Bitcoin regulation by the government is inevitable.

Majestic-milf

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Quote from: Vaskiy on March 28, 2022, 06:27:29 PM

Russian Deputy Minister of Energy Evgeny Grabchak revealed statement about introducing clear regulations for crypto mining in the country. His statement served as a support for the cryptomarket and the miners within the country, because back in January cryptocurrency mining was banned in Russia.

During the first national conference of legal crypto miners Grabchak called for introducing a regulatory framework for the sector at the earliest. In his statement he added

Quote

"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".

Russian government to legalize mining soon

I think this is a positive step in the right direction and I see it as an effective method to curb risks associated with the adoption of crypto in the country.
Should I say this is a welcome distraction from the war with Ukraine as most Bitcoin users will utilise this and will help to maintain a balance. I hope they consider this soon if possible, pass it in to law as it will go a long way to regulate the quantity and allocation of mining operations in the country.

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Quote from: Lucius on March 30, 2022, 04:46:11 AM

Quote from: suzanne5223 on March 29, 2022, 10:28:46 AM

Well said. I believe most crypto investors are happy about this news because it will help the price of the market and also give Bitcoin more reputation but they never give it a thought if the decision will help common people living in the country and how true is the news because the current invasion that happened between the country in the subject make me know how fake news is shared from them and this make it hard for me to know what's really going on there.

In the short term, yes, but in the long term, things like this can only damage that reputation - because if Russia starts using Bitcoin (which I personally don't believe), it would be a reason for even stricter regulations and possible bans. At the moment, Russia has much bigger problems than dealing with such trivial things - it would be ideal for them to do something similar to China, so that we get rid of any doubts about what they think or want to do.

yes, so much true. But it is the same for every country. No country will accept it without regulation by the government.
If they can't regulate it, they will ban it. Ukraine has now made the use of bitcoin open to the public, but there is no guarantee that they will not want to regulate bitcoin after the war.

Due to the war, the economic situation of both countries has become fragile. This is where the beauty of Bitcoin comes into play. Whether it is the victim country or the invading country, the conventional economic system and fiat money have done real harm to both. Decentralized bitcoin is the only way to get rid of this barrier.

darewaller

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Quote from: Captain Corporate on March 29, 2022, 01:33:36 PM

Legalizing is one thing, the other is the fact that the energy "must be" cheap there as well considering how much of it they are selling. I have zero clue how much people pay for electricity there, maybe it's very cheap or maybe it is not, if someone who is a Russian would enlighten us (or someone who is not Russian but can google better than me) that would be great. Between the legalization, cold weather, cheap prices then we are talking about something that would be super profitable. At the end of the day it's not really that shocking to see Russia being a great hub for all the crypto miners of the world. It is quite the ideal place for them and checks every single box.

Around $0.071 when you check from the internet. Which means if you have 8 GPU right of 3070 (non-lhr) that would earn you 600 dollars per month. By the looks of it, that wouldn't be enough to survive, but it is certainly a good side income with not too much money spent (less than 20k) and the return rate is quite good as well. The price of electricity is certainly cheaper than most places in other nations, there are a few that are cheaper, but not that many.

Cold air is certainly great but that will also means that you need to be more north or east, places that are closer to west are not as cold as the places that are closer to east, and that means it would be further away to capital, don't know if that matters or not.

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Quote from: suzanne5223 on March 29, 2022, 10:28:46 AM

Well said. I believe most crypto investors are happy about this news because it will help the price of the market and also give Bitcoin more reputation but they never give it a thought if the decision will help common people living in the country and how true is the news because the current invasion that happened between the country in the subject make me know how fake news is shared from them and this make it hard for me to know what's really going on there.

In the short term, yes, but in the long term, things like this can only damage that reputation - because if Russia starts using Bitcoin (which I personally don't believe), it would be a reason for even stricter regulations and possible bans. At the moment, Russia has much bigger problems than dealing with such trivial things - it would be ideal for them to do something similar to China, so that we get rid of any doubts about what they think or want to do.

Captain Corporate

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Legalizing is one thing, the other is the fact that the energy "must be" cheap there as well considering how much of it they are selling. I have zero clue how much people pay for electricity there, maybe it's very cheap or maybe it is not, if someone who is a Russian would enlighten us (or someone who is not Russian but can google better than me) that would be great. Between the legalization, cold weather, cheap prices then we are talking about something that would be super profitable. At the end of the day it's not really that shocking to see Russia being a great hub for all the crypto miners of the world. It is quite the ideal place for them and checks every single box.

tbct_mt2

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Quote from: bitzizzix on March 29, 2022, 10:53:03 AM

True or not, I think this news is very positive, and I judge all the positive news that happened
that step by step crypto is very useful for countries experiencing problems and crypto has a solution.

More nations accept Bitcoin, it's better. More legal tender, it's better. More regulations on Bitcoin and crypto market, it's better.

I see adoption, legal tender, regulation are strongly correlated and they are components to bring Bitcoin and cryptocurrency to everyone on Earth. It's for a better future with more freedom financially.

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True or not, I think this news is very positive, and I judge all the positive news that happened
that step by step crypto is very useful for countries experiencing problems and crypto has a solution.
crypto can reverse the situation that bans will accept and those who hate will love it, and there's no denying it because it's real and we should feel good about it and hope it's real and will also set an example for other countries.
and most importantly it will attract many investors and also increase users that crypto has many advantages over fiat.

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Quote from: cryptoaddictchie on March 29, 2022, 02:24:10 AM

They only realize it when they experience the lack of financial system to be use at this time. Probably they will definitely reflect on their wrong doings now.

In a way, this war has really put the spotlight on crypto than before the war, but i doubt putin is capable of reflecting on any wrong doing, especially when he thinks he is doing the right thing. the sanction makes everything more faster, all doors where close to Russia and crypto becomes the perfect alternative, btc was created as an alternative to fiat and this situation shows it.

tbct_mt2

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Russia is just one of many nations in the world map of Bitcoin mining. The nation does not contribute dominant hashrate like China had before the China crackdown on mining.

Russia might use their fuel to mine Bitcoin and take it as their national reserve to gradually replace gold. The sanction globally put their reserves in USD, gold at risk and freeze but who can freeze their Bitcoin. So it would be not a bad option for them.

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Quote from: Kakmakr on March 29, 2022, 01:06:23 AM

A few months ago the different houses and Ministers of the Russian government had opposing views on the legality of Bitcoin and Crypto currencies, but now that Bitcoin and Crypto currencies has benefited them, by enabling them to bypass sanctions... they suddenly agree that Crypto currencies should be legalized. Roll Eyes

It just shows you how governments shape their opinions on something, if they can profit or benefit from it.... and not if it is beneficial to their citizens. Roll Eyes

They need the money and we all know how hypocritical any government is, and it's not surprising that there's changes in their stance against bitcoin and crypto mining because I am pretty sure that if there's no war, they wouldn't be so desperate trying to get into crypto knowing that majority of the people in the offices opposes it. I don't know how they would be able to make their fiat dependent economy work with those bitcoins.

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Quote from: Lucius on March 29, 2022, 09:56:34 AM

Even if this is true, will it change anything for the better for the common man in that country, or will only those who are already rich benefit? In addition, let’s not forget that one should not believe most of the news from that country, because it is obvious that that country has become a factory of fake news when it comes to cryptocurrencies.

Well said. I believe most crypto investors are happy about this news because it will help the price of the market and also give Bitcoin more reputation but they never give it a thought if the decision will help common people living in the country and how true is the news because the current invasion that happened between the country in the subject make me know how fake news is shared from them and this make it hard for me to know what's really going on there.

In the meantime, we will know what really happen there soon.

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Quote from: Poker Player on March 28, 2022, 10:46:04 PM

Quote from: Vaskiy on March 28, 2022, 06:27:29 PM

Russian Deputy Minister of Energy Evgeny Grabchak revealed statement about introducing clear regulations for crypto mining in the country. His statement served as a support for the cryptomarket and the miners within the country, because back in January cryptocurrency mining was banned in Russia.

I suppose people living in Russia will take advantage of this to mine, but I doubt this will attract foreign capital, at least significantly. It is no longer because of the war or Putin, it is because of the perceived insecurity of having gone back and forth on this issue: now I am going to ban it, now I am going to legalize it, tomorrow I will ban it again, and so on.

That said, I hope it will finally be carried out.

Your doubts are very reasonable, before the war they banned bitcoin. Perhaps their acceptance of crypto is partly due to the impact of the war on their country. If the war ends and everything goes back to normal, I don't know if they will continue to ban it or if there will be a regulatory framework for crypto.
This will make foreign investors nervous and it will be difficult to attract foreign investors with Russia's sudden decisions.

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Even if this is true, will it change anything for the better for the common man in that country, or will only those who are already rich benefit? In addition, let’s not forget that one should not believe most of the news from that country, because it is obvious that that country has become a factory of fake news when it comes to cryptocurrencies.

If one thinks that crypto mining would bring some financial benefits to Russia, one should know that for such a large country it is actually dust - it's like when some thought the Chinese economy would collapse because they banned crypto mining - complete nonsense. Data for 2021 say that the total earnings of Bitcoin miners are something around $15 billion, and even if half of that becomes Russian profit, in the overall picture it is insignificant.

Quote from: https://www.outlookindia.com/business/bitcoin-miners-revenue-rises-206-in-2021-says-study-can-crypto-mining-be-profitable--news-44891

The report finds that on a year-to-date basis, Bitcoin miners have generated a total of $15.3 billion in revenue, making 2021 a record year in terms of Bitcoin mining. This spike in Bitcoin mining also contributed to the skyrocketing price of Bitcoin in 2021.

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Quote from: davis196 on March 29, 2022, 01:06:08 AM

Russia is in the Top 3 countries,when it comes to crypto mining and hashpower.

Do you mind sharing the proof for this statement of yours? It sounds to me like the silly statements people make about US having the biggest hashrate because Chinese miners moved there lol.

Quote from: cryptoaddictchie on March 29, 2022, 02:24:10 AM

Now other countries might oppose this now that they see that Russia gonna resort to use crypto for their financial system.

Not at all. Russia is using Ruble and is forcing everyone else (like Europeans that depends on Russia) to use their currency for their trades.
As I said before, with the evidence we have so far, the usage of bitcoin is not going to be significant in Russian economy. We have to wait and see what the future holds though. Bitcoin usage will continue to grow but I doubt that in near future we see it be the dominating currency for import/export .

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Quote from: Kakmakr on March 29, 2022, 01:06:23 AM

A few months ago the different houses and Ministers of the Russian government had opposing views on the legality of Bitcoin and Crypto currencies, but now that Bitcoin and Crypto currencies has benefited them, by enabling them to bypass sanctions... they suddenly agree that Crypto currencies should be legalized.

But because for now Russia already has a lot of enemies, the new legality is likely to be long term. Russia has really benefited from bitcoin in these global sanctions. After all, due to the boycott of global oil exports, bitcoin mining would probably become their lucrative oil "trade" allocation temporarily if they set up their own mining farms like Elsalvador.

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Quote from: avikz on March 29, 2022, 12:30:15 AM

This is nonsense! Russia is learning the hard way that cryptos can indeed help their economy in case of an isolation. I hope this incident will put some sense on other governments who are opposing the inclusion of cryptocurrency in their economy.

They only realize it when they experience the lack of financial system to be use at this time. Probably they will definitely reflect on their wrong doings now. Other countries would likely follow suit this as being sanctions isnt that simple and the way to handle financial better is use decentralized approach of bitcoin. Now other countries might oppose this now that they see that Russia gonna resort to use crypto for their financial system.

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