Bitcoin Forum

Is Russia trying to avoid sanctions by legalizing crypto mining? What do you think about this? Why now? War ain't over yet but they have the time to think about this? I will like to know people's thought on this.

Here is a link to a news on the whole issue, OP please next time try to share a link for people who prolly have not heard a thing about what you are talking about.
https://coinidol.com/russia-legalize-cryptocurrency-mining/

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Having said that, from the news' i have read thus far on this particular issue, it is basically clear that Russia are attempting to legalize crypto mining to aid their economy after it has been hit hard by numerous sanctions over the past one month. It is no longer news that Russia invaded Ukraine about a month ago, and in response to that, The U.S, U.K and The E.U have hit really hard sanctions on the energy powerhouse, making them a sort of pariah nation at the moment.

Russia in turn have to find ways to ease their economic crash and make things fairly better, mining has been ongoing in Russia, but since the country banned it, we can say it has been happening illegally, so if Russia manages to make mining legal now, miners can now freely mine crypto without hiding, while the government benefits in return through taxes and every other kind of fees miners would be expected to pay, this could at least help their economy, even if personally i think the effect would be minimal.

Indeed, the Russian economy began to collapse after the imposition of sanctions on it by the United States of America and its allies. It should search for alternative ways to help its economy recover. Last week, Putin (https://www.reuters.com/business/energy/putin-says-russia-will-start-selling-gas-unfriendly-countries-roubles-2022-03-23/) said that energy exports to unfriendly countries will be sold only for rubles!!!

It is also expected to accept payments in Bitcoin (https://twitter.com/btc_archive/status/1506991688425869333?s=21)for the sale of gas and oil

Crypto has always been a friend for nations who are left alone by the rest. Venezuela, Iran they too took the help of crypto to trade with countries that they can't openly trade with. With the world divided by politics, companies and business would need alternative way to trade without being cancelled and crypto would let them do it indirectly. They don't even need to show those trades on their spreadsheet. With Ruble down, bitcoin would be a good option for Russia.

Russia will do everything it can to prosper & not lose wealth. Putin doesn’t give a damn & he will do anything. If bitcoin helps them then he will have no hesitation to allow its use in trade deals or whatever. Russia is ruthless, I do not predict their economy to be in trouble for long.

They could do all sorts of things that they do like specially if it needs to tag up crypto with this then there's no one could stop if ever they would really done that.Crypto is just like that typical currency and with that

decentralized kind of trait or feature which make things possible.Some do even take it seriously and starts looking bad on crypto just because its been used by Russia who had started this war
and now their economy had been hurt then its normal that they would really be finding out alternatives on where they could able to sustain.

But at least he has a plan that would be seen as great decision in the future although not everyone are amazed of what he has done but when the right time comes they will surely thank Putin, for his service. I'm sure Putin have had a great plan even if there's a lot of sanctions on their country, I'm sure he's risking something just to protect their country.

But for now, we don't what he's up to by allowing miners again to operate legally on their country but I'm sure it's for the benefit of their country. Crypto currency and Bitcoin is just a great opportunity to use if fiat isn't available.

It is very timely for them to start legalizing crypto transactions since there have been a lot of payment processors that have stopped operating in their country.
Accepting bitcoin for oil is actually a good idea. Two great assets that have been in pair, but AFAIK, they're still going to do it as what they've planned to transact whether in Yuan or in Ruble. They're thinking about it because it's the right time for them to start executing these plans to avoid further sanctions which will really hit them even worst.

It's funny when you look back since there was a proposal to ban the use and mining of cryptocurrencies at the beginning of the year.

There is no doubt it's related to the sanctions imposed on them. We may not like the circumstances why they came up with this move and the timing of it but we're actually witnessing the real benefits of bitcoin put to good use by a country.

Who would be crazy to run a mining farm in Russia, risking themselves to have the whole equipment, production and profit seized by the government anytime they want, especially during crisis times?

It's clear Russia is desperate for more income and they need this through any sources that can be milked faster as possible, to keep the economy and the war going on at same time.

It's a real bad signal, because by some time ago Russia was totally against crypto and now suddenly they want to legalize mining activity. You can expect there are serious hidden intentions behind this proposal.

Russia is currently at war with Ukraine. The states of the world and most of the states, especially nato, have turned against Russia and support Ukraine. As a result, there is a huge embargo and sanctions against Russia and its economy. For this reason, the Russian economy is in a crisis. In my opinion, there is only one way to get out of this crisis and keep its economy alive and that is crypto money. The creator of ethereum, one of the largest cryptocurrencies in the market, is also Russian. Inevitably, I think that by using this wing, Russia will make a great contribution both to the development of crypto money and to their economy from crypto money.

Why was crypto mining banned before in Russia and what has changed since then that makes them now want to legalise what they already banned?
I think it's a good news for the crypto community regardless of their reasons because cryptocurrency is all about freedom to transact with people.

I think Russia is doing it now after so many months of dilly-dallying and it is because of the war and the heavy sanctions imposed on it by the international community...surely the government of Putin and the people of Russia are right now feeling the many pains and the Putin team got to do many things in response to the sanctions by coming up with many viable alternatives...and so these days they are looking at cryptocurrency as one of their many possible saviors. What is interesting here is that Ukraine has already made cryptocurrency legal...so at the end of this war both countries will be part of those already into cryptocurrency. I would say that this can be the silver lining in the face of the destructions happening in Ukraine right now...an unnecessary war if you ask me.

Putin knows what's best for his people and country, they want to get better at everything that has something to do with technology, at first they put a ban on crypto mining and now they plan to legalise crypto mining, this is good news.

I also heard, after a lot of sanctions received, they started to retaliate in a way "they will only accept GAS payments using crypto(bitcoin)" I don't know if this is just a plan, but one thing I do know is that as long as the sanctions last, I think Russia is going to be very crypto friendly. they will solve the country's economic problems by using crypto.

this is due to the ruble in free fall, due to the swift ban which makes it even more worthless. but with the existence of cryptocurrencies, it can replace the ruble to make transactions, because crypto has one price throughout the world, so this does not prevent Russia from developing its economic sector. many countries do not yet have regulations on crypto, and this is a gap to replace the ruble which is the country's official currency

If many countries sanction you and you can't do anything what other alternative they can do right? the cryptocurrency is decentralized and they can invest to it or legalized it that's what I think the only option they can do to avoid or lessen the effect of their sanction. That's why they only implement it now since they don't have a choice.

If they legalize mining it will help the economy because of tax collection but to an extent that won't be the solution of Russia even when the war ends. Russia is likely going to go down for a long time because tax collection in mining alone can't solve the problem of limited trading. Limited trading in global market will still exist after the war and the amount of money that is suppose to enter the economy through global trading (foreign exchange) is higher compared to tax collected from mining.

Well, Russia desperately needs foreign capital and foreign exchange. Since the regular channels are now largely blocked, it is looking for alternatives, in this case in cryptocurrencies. Russia could, for example, suspend the taxation of crypto profits and thus try to let capital flow into the country.

Because of my perspective from growing up in a country also affected by war, I will summarize your problem. I see war as wrong, but the more we go into it, the more we will see that the problem of conflict from the parties that have been formed since the war is a must, and this is probably the right time to do so. end and start all over again. The fact that Russia is looking positively towards BTC is also understandable when the sanctions targeting them cause economic disruption, and the solution from BTC is a good way to help them improve this situation. I hope this war will stop and everyone will find a common voice to harmonize their interests with each other. It is sad that when society develops, the conflicts still cannot go away.

Russia is a superpower that has a huge influence on the global. The war with Ukraine is a minor problem compared to the economic sanctions it has received. But Russia was able to resist economic sanctions. Of course the top brass in the country have plenty of time to think about other things, including crypto mining.

Saying that the Russian economy is falling apart, but at the same time it sells its gas for rubles, you have lost logic. Who suffers from gas and fuel prices? Russia? And who today sweeps all products from store shelves, who has problems with flour, butter, or even salt and soda? Is this really Russia?
Or maybe those who imposed sanctions have problems, and today they receive a refund from these stupid sanctions. Therefore, time will tell whose economy is falling apart, you just have to wait.

For now, Russia has legalized crypto, and this all certainly has big plans to deal with their economic situation that is not good because of sanctions from various countries, maybe by legalizing crypto they can get a way out of the problems they are facing, so now indeed cryptocurrencies have become a way for countries that are in the midst of economic damage, and they can come out by legalizing crypto like Venezuela and Iran.

That is not really a bad idea when you think about it. Crypto is decentralized, which means that if you are using bitcoin to deal with the rest of the world, anyone who wants to deal with you will do that. This will result with you getting a great reserve currency which could help you get as much power as you want economically.

I am sure that they would rather dealing regularly like they have been for a while, but if that is not possible then in that case they will end up dealing with bitcoin obviously. This is basically a "they left us no other choice" solution for Russia and I do not think that it is a bad one neither. They will surely benefit from this in the long run.

The invasion of Ukraine and the atrocities that the Russians are doing, destroying settlements and killing civilians in Ukraine - women and children, very quickly turns Russia into a pariah country.

The Putin regime, like Russia as a whole, will not be saved by cryptocurrency. In addition, they do not intend to legalize it yet. If necessary, the ruling elite of Russia can use cryptocurrency even without its legalization. After all, legalization means providing broad opportunities to the people, and this is not in the interests of the authorities. Most likely, they will use the Chinese yuan instead of the dollar and the euro. Moreover, Russia has lost a significant part of its gold and foreign exchange reserves and now only some of them remain in yuan in Chinese banks.

But one thing is money, currency, and another thing is a strategic product, imports and exports, on which sanctions are imposed. His movement is controlled by the international community. Now they write that Russian oil tankers disappear from the radar, turning off the corresponding equipment. However, this will not help Russia.