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Russia is Set to Become Possibly the New Crypto Superpower

Ever since President Vladimir Putin claimed the month before that Russia has what it takes to mine bitcoin, things seem to have been picking up in the country. In the process of everything, Putin’s government and Central Bank has initiated a bill to recognize bitcoin as a currency and also to regulate cryptocurrencies. All this progress foretells the possibility that in the near future, Russia could soon become a cryptocurrency superpower.

After China banned the mining of cryptocurrency on its territory,

the Russian interest in cryptocurrencies has been on a rise. China, which had till now been the dominant center of activity in the world, with this move, prompted the miners to find alternative locations for their installations. This migration of bitcoin miners is what has enabled Russia to now become the world’s third largest center of activity, in accordance with the data from the Cambridge Center for Alternative Finance. China’s decision has also brought great benefits to the United States as well, which has taken the lead in this ranking. The United States currently represent approximately 42.7 percent of the hashrate world bitcoin, which is undoubtedly, the largest share of the market. It is followed by Kazakhstan and Russia, which have 18.1 percent and 11.2 percent respectively.

Russia is no far from overtaking

Kazakhstan and facing directly the US for that top position. The Russian Ministry of Economic Development has recently announced the intention to legalize miming of bitcoin in areas that have a sustainable surplus of electricity production. The bill also provides other benefits for minors to encourage them to settle more in Russiia.

Around a week ago, the Russian authorities also announced

that they are presently working on a bill that will regulate the cryptocurrencies in the country. Early comments on this bill suggest that the law will permit the purchase of cryptocurrency only if it is carried out through the means of locally registered and approved companies. Local industry players see this as a positive development after the Ministry of Finance stated its desire to ban cryptocurrencies in the past.

The Russian Finance Minister Alexei Moiseev said

earlier this week that it is crucial to ensure the traceability of cryptocurrency transactions and financial flows. He continued to comment and added further, that banks and exchanges, that are required to comply with anti- money laundering laws, will be the only legal entry point for cryptocurrencies into the Russian market. Binance, the largest cryptocurrency exchange in the world, is already deliberating on an expansion in Russiia. If they are validated, these two bills can make Russia, the new attraction for the cryptosphere and will further push companies in the industry to settle there en masse. The country, therefore, will thus be propelled to the tag of ‘crypto superpower’, sharing the spot alongside the United States.

Also Read: Cash App Integrated with The Lightning Network- Here’s What you Need to Know

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