Russia Crypto Mining Farms to Report to Government Under Proposed Bill

The Russian government is seeking oversight over all the country's crypto mining farms in a recently proposed bill.

September 3, 2020 | AtoZ Markets – The Russian government will oversee all the country’s crypto mining farms if a recently proposed bill is passed. The bill requires all the country’s data centers to report all their activities to the government. This, however, includes crypto mining farms.

According to the Ministry of Digital Development, Communications and Mass Media, the proposed bill finally seeks to police its data centers. It describes data centers as an establishment that hosts hardware, providing storage, processing, and access to data, “with guaranteed accessibility, security, and management levels.” 

New bill requires Data centers of Russia's crypto mining farms to report to the government

These data centers of crypto mining farms will be under obligation to report to the Roskomnadzor. Roskomnadzor is the federal agency that supervises communications and mass media in Russia. Roskomnadzor is known for issuing bans and censoring internet content as it recently did with digital currency websites.

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According to the proposed bill, crypto miners will have to let the agency in on their operations, including their computing capacity, data storage, services provided, their physical locations, connection to the national electricity grid, cost of running the process, and more. 

The ministry is inviting feedback regarding the bill 

The Ministry of Digital Development, Communications, and Mass Media is inviting public feedback regarding the bill. However, the new bill has divided the Russian crypto community. Those who support it believe that the law will bring compliance to the industry. Igor Runets, the CEO of Siberian mining firm BitRiver, believes that the bill won’t pose any challenge for compliant crypto mining farms.

Read also: Kazakhstan To Raise Over $700 Million For Cryptocurrency Mining

The Russian government recently enforced new crypto regulations in the country. The new law allows Russians to trade cryptocurrencies but does not permit them to price goods and services in Russia in cryptos. If someone wants to buy something with Bitcoin, then he has to sell it for rubles first.

What do you think about Russia's crypto mining farms' proposed bill? Let us know in the comment section below.

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