Russia has announced a ban on crypto mining activities in 10 regions until 2031. This decision aims to balance energy consumption and prioritize industrial demands, starting from January 2025.
Regions Affected by the Ban
The Russian government has identified regions such as Dagestan, Chechnya, and the Donetsk and Lugansk People’s Republics, among others, where crypto mining will be entirely prohibited. Additionally, temporary mining restrictions will apply in parts of Irkutsk, Buryatia, and the Zabaikalsky region during peak energy consumption periods.
Flexibility in Restrictions
Officials have noted that the list of restricted regions could change based on recommendations from the government commission responsible for electric power management. The primary objective of these measures is to ensure a stable energy supply for industries while controlling the strain on the energy grid caused by crypto mining.
Legal but Heavily Regulated
This decision follows Russia’s move in November 2023 to legalize cryptocurrency mining. The framework requires miners to register with the Federal Tax Service, providing detailed information about their assets and wallet addresses. Individual miners are permitted to mine within a limit of 6,000 kWh per month, ensuring compliance with the country’s energy policies.
Balancing Crypto Innovation
By imposing these restrictions, Russia aims to address the energy needs of industries while allowing regulated crypto mining.
Singapore’s Crypto-Friendly Policies Outshine Hong Kong’s Restrictions
Singapore has surged ahead of Hong Kong in crypto adoption. This shift is attributed to Singapore’s progressive regulatory framework, which contrasts sharply with Hong Kong’s more restrictive approach.
Singapore’s Regulatory Advantage
Singapore’s regulatory environment has been a key driver of its success in the crypto space. The Monetary Authority of Singapore (MAS) has issued a record number of digital payment token (DPT) licenses in 2024, raising the total number of licensees to 29. This proactive stance has attracted major players like OKX and Upbit to establish operations in the city-state.
“Singapore’s framework encourages interaction between new entrants and established institutions,” said Ben Charoenwong, associate professor of finance at INSEAD, according to Crypto.News.
Hong Kong’s Struggles
In contrast, Hong Kong has faced challenges in its regulatory approach. The city’s Securities and Futures Commission (SFC) has been slower in approving licenses for virtual asset trading platforms (VATPs), with only seven platforms fully licensed. This has led to a lag in retail adoption, which remains at 24%.
“Hong Kong’s regulatory regime for exchanges is more restrictive in a number of ways that matter,” noted Angela Ang, senior policy adviser at TRM Labs.
Impact on Adoption Rates
The differing regulatory approaches have had a significant impact on crypto adoption rates. Singapore’s supportive environment has led to a higher rate of institutional adoption, while Hong Kong’s stricter regulations have hindered broader consumer engagement
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