Russian Ministry Might Legalize Bitcoin Mining

The Russian ministry continues to develop a regulatory regime for digital assets. Meanwhile, a federal department has made another proposal for the crypto mining industry.

Russian Ministry of Economic Development has approved the concept of crypto mining regulation in the country. They proposed to allow mining operations in areas with “sustainable excess power generation.”

The ministry also proposes lowering the cost of setting up mining farms and data centers in specific regions of Russia. Additionally, they offer lowering energy prices for such facilities.

The ministry of Russia also wants to establish limits on electricity use for personal mining. The ministry has reportedly proposed introducing higher energy rates to increase energy bills. The report noted that authorities had not set a threshold for this.

According to the ministry, the newly proposed rules will eliminate the risk of insufficient electricity supply for housing, social facilities, and infrastructure in other parts of the country.

In addition, the ministry is reportedly proposing to treat cryptocurrency mining as a commercial activity.

The latest proposal comes amid ongoing uncertainty about cryptocurrency regulation in Russia. However, different parts of the government still debate how to regulate bitcoin.

As previously reported, the Russian Ministry of Finance has been advocating for the crypto industry regulation. Meanwhile, the Bank of Russia has been actively insisting on banning crypto trading, citing investor protection risks.

As the government officially approved the concept of crypto regulation on February 8, Russia’s central bank governor Elvira Nabiullina subsequently announced that the bank did not support the state’s decision and would continue to oppose the adoption of cryptocurrencies in Russia.

According to reports, the government and the central bank will introduce a joint crypto regulation bill by this Friday.

Chingari Integrates Native Token To Advance Web3 Social Network

Indian social networking platform Chingari has announced the integration of the native digital asset $GARI. They will accompany cryptocurrency wallets via the Solana blockchain, revolutionizing the experience of its 100 million user creator economy.

Translated to the word “Spark” in Urdu and Hindi – a brand that is aligned with its flame icon – the Chingari user interface is often compared to popular Western entertainment services TikTok, Instagram Reels, and YouTube Shorts for its Mainly focus on short films – timed, unlimited access video content.

Launched in 2018, the platform has grown exponentially over the past few years. The app counts more than 35 million monthly active users. Chingari is the most popular mobile app on the Google Play Store in the country.

As with TikTok, creators are admired for their entertainment on various topics. They demonstrate lip-synching, belly dancing, sketch comedy, and fashion tips.

Since April 2021, Chingari has received funding from multiple rounds. Funds included a $13 million corporate game on April 1 a $19 million Series A round led by Galaxy Digital and Republic Crypto on October 8 and 11. The $40 million ICO on January 4 ended with a $13.37 million Series A renewal on January 17 this year.

Following nationwide concerns over the Securities and Exchange Board of India’s (SEBI) regulatory intentions for digital assets, a proposed infrastructure bill seen by local news outlet NDTV suggests that the government is preparing to implement a regulatory framework for digital assets instead of an outright ban.

In addition to this, the Indian government has taken a firm stance. The government condemns the acceptance of cryptocurrencies such as Bitcoin and Ethereum as a vehicle for legal tender and instead pursues the viability of a government-backed central bank digital currency (CBDC) digital rupee.

RBI Official Calls For Ban On Cryptocurrencies

On February 14, RBI Deputy Governor T. Rabi Sankar called for a total ban on cryptocurrencies in front of other bankers.

The statement came days after the Union Budget proposed a tax on cryptocurrencies. This proposal has raised concerns among other financial experts. In his speech, Sankar compared the Ponzi scheme to cryptocurrencies and said that banning it was the “smartest option” for the Indian government.

Sankar noted that giving cryptocurrencies a chance to exist in a country where fiat money prevails, destabilizing effects on a country’s monetary and fiscal stability would be inevitable. He further added that regulating the cryptocurrency will make it an investment asset, making it more valuable and stealing more rupee users.

RBI officials stressed that simply regulating cryptocurrencies would encourage their use within government-created foundations. However, Sankar knows that despite the ban on virtual currency, cryptocurrency customers will still support its use, as in “despite the prohibition, drug trafficking is rampant.

India is one of the countries where blockchain companies and lawmakers continue to debate cryptocurrency regulations. Meanwhile, the decision to legalize or ban the use of cryptocurrencies remains in a state of prolonged regulatory uncertainty as Finance Minister Nirmala Sitharaman assured further discussions on the matter.