Monday, January 17

Russia threatens to arrest cryptocurrency miners

Russia, one of the biggest economic powers in the world, is spending a good part of its time trying to solve the cryptocurrency issue. Both the country’s legislative chamber, the Duma, and its Central Bank have been debating the matter for a few months.

On this last occasion, Andrey Logovoy, a Russian politician, threatened to arrest all miners who connect their equipment to the country’s electricity grid without proper official authorization, as reported by

His speech takes place while Russia is trying to legalize the mining sector, although it faces counter pressure from the BC itself, which does not want to admit that Bitcoin is a currency simply because it does not have a centralized issuer, as in the case of fiat currencies.

Miners seek shelter

After China banned mining activity on its land, miners needed to move their equipment to other countries. Among the main destinations are the US, Kazakhstan, Canada and, of course, Russia.

Due to the high energy consumption, these installations can cause certain problems for some regions, such as the lack of food, making countries like Iceland bar the entry of new miners.

With that, countries like Russia are looking for solutions to this problem, such as the legalization of the activity. With it, it will be possible to collect taxes to try to suffocate the sector and also generate income for the country.

With that, Andrey Logovoy’s speech about arresting illegal miners shows that Russia will monitor the sector closely, planning to avoid abuses from those who might try to evade the government to obtain more profits.

Russia has an important decision ahead

Today Russia has a tough decision on its hands, despite being able to ban mining as China did, the country is more inclined to legalize the sector, although that could mean the green light for Bitcoin, which the Central Bank of Russia do not want.

However, this is one of the most profitable sectors in the industry today and a tax, however small, can generate good income for the country. Furthermore, as it is a cold country, the heat from the equipment can be useful for heating properties.