Russia is Going to Drag Cryptocurrency Miners out of Shadows, Starting from Irkutsk Region

Nov 23, 2021 at 12:40 // News
Lana Smiley
Cryptocurrency mining becomes widespread in Russia

The Russian State Duma is getting serious about dealing with illegal cryptocurrency mining. Its member Anton Gorelkin has proposed starting in the Irkutsk region.

As CoinIdol, a world blockchain news outlet, previously reported, the Irkutsk region has become something of a capital of crypto mining in Russia. According to the region's governor, Igor Kobzev, local electricity consumption increased by 159% last year.

The low electricity prices attract miners to the region. However, most of them work in the shadows without paying properly for the energy they consume, which has become a major concern for the government. 


A framework for legal operation

For this reason, in his official Telegram channel, Gorelkin suggests paying special attention to the Irkutsk region due to its high concentration of miners. Although he shares the Central Bank's caution regarding cryptocurrencies, he also states that it is not reasonable to deprive people of such a business opportunity. Especially since they have already become a main source of income for so many people.

In early November, representatives of the Liberal Democratic Party of Russia presented a draft framework for the legalization and regulation of the cryptocurrency industry. The State Duma is currently working to finalize the drafting of the regulations.

It is quite possible that Irkutsk will be the first region to implement the framework once it is finalized. However, the fact that the government will not follow China's example and crack down on the mining industry is cause for optimism. Perhaps the government's efforts will eventually lead to an effective framework that will help the cryptocurrency mining industry in Russia flourish.

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