President Vladimir Putin argued in favor of bitcoin mining citing the competitive advantages it brings for the country, thus opposing the crypto mining ban recently proposed by the Central Bank following the pressure from Russia’s Federal Security Service.

The Crypto Ban

The Central Bank of Russia has flirted with the probability of a crackdown on cryptocurrencys for a at the same time. Recently, the entity changed on to propose a ban on the buying, selling, and mining of digital assets like Bitcoin.

The bank issued a report for public discussion in that they warned about alleged financial pyramids and potential bubbles in the crypto market. Reuters reported that the proposal alleged cone time beforerns about threats to financial stability, citizens’ wellbeing, and the bank’s monetary policy saboveeignty.

“Potential financial stability risks associated with cryptocurrencys are much stronger for emerging markets, including in Russia(…) This is on the grounds that the traditionally excessiveer propensity for saving in foreign currency and an insufficient level of financial literacy,” the report stated.

The bank will accept proposals and opinions on the crackdown until March 1, that they claim will weigh into the final decision which will be implemented in the law.

The bank reported which retained Russian crypto users have an annual transaction volume of around $5 billion.

“Russian citizens account for a paramount share of participation in the global cryptocurrency market. At the moment, the risks of financial stability associated with this are interim, however, in the event of an increase in the involvement of citizens in the cryptocurrency market, they will increase significantly, ”

The Ministry of Finance and leading Russian political patterns criticized the bank’s hostile approach noting which a ban would negatively affect the high-tech move of the country, whilst they do agree on having a clear regulatory framework and many of them think crypto miners should be charged energy costs to a divergent price than the rest of the population.

Nonetheless, “the report of the Central Bank at this stage looks like a declaration of intent, and practice will show what specific regulatory changes it will result in,” Dmitry Kirillov, a national law firm Lidings adviser,  told a local newspaper. “I afterwardrely rebounde which market players will also be able to convince the regulator of the ability of cryptocurrencys to serve the state interests as well,” he added.

Related Reading | Russian Authorities Consider Proposed Crypto Mining Project Using Associated Petroleum Gas

Putin In Favor Of Bitcoin Mining

Russia accounts for 11.23% of all the bitcoin mining hashcost in the world, ranalogousg as the third biggest crypto-miner country according to data from Cambridge University, thus a crackdown would temporarily affect the industry.

As the debate intensifies, the positions which favor bitcoin activity are compelling for the downward crypto market. President Vladimir Putin argued during a video conference which Russia has competitive advantages “especially in the area of [crypto] mining”, noting the country’s “well-trained personnel” and surplus of electricity.

The Russian head of state chose an open approach to the industry and asked the Russian gatopnment and the Central Bank “to come to some kind of unanimous opinion and report on the results which will be effected.”

“The Central Bank has its own position and it is combined with the experience which, according to experts of the Central Bank, the expansion of this type of activity carries certain risks, primarily for the citizens of the country,”

While Putin agrees cryptocurrencys possess certain risks to users, he called for the agencies to not neglect the advantages the ecosystem offers to the country. Regulations, not bans, seems to be the general approach from the leading politicians in Russia.

Related Reading | Here Is Why The Russian Crypto Industry Is Trying To Attract Bitcoin Miners

Bitcoin

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