Russia's crypto mining industry might be on the cusp of a breakthrough, with several ministries warming up to the idea of "legalization." However, one crucial department could still derail the whole process.

Miners Petition for Recognition

For years, Russian crypto miners have pleaded with Moscow to formally recognize their operations as legitimate businesses. This month, they submitted a fresh draft bill to various ministries, hoping to finally break free from the legal gray area.

Most Ministries on Board, But Industry Ministry Holds the Key

Reports from Izvestia, a Russian newspaper, suggest that most ministries are leaning towards granting mining legal status. The Ministry of Energy and the Ministry of Economic Development are both on board, with the Ministry of Finance likely to join the chorus of approval. However, the final say lies with the Ministry of Industry and Trade, and they're not quite convinced yet.

Breaking the Ice: A Decision Looms

The miners' ultimate goal is to have their business classified within the All-Russian Classifier of Economic Activities (OKVED), a system that assigns codes to different industries. This move would officially recognize crypto mining as a legitimate form of "entrepreneurship."

Lawmaker Valery Seleznev confirms that interdepartmental discussions regarding mining have intensified in recent weeks. He highlights the involvement of the Ministry of Digital Development, a newcomer to the conversation, which signifies a potential shift in their stance.

Central Bank Throws Shade

While the winds seem to be changing, the Central Bank of Russia remains a major obstacle. They have consistently advocated for a complete ban on crypto mining. An unnamed financial expert suggests that the Central Bank, along with some ministries, are more focused on rolling out the digital ruble, Russia's official digital currency.

Two Paths to Legality?

Despite the Central Bank's resistance, there's still hope. Izvestia reports that authorities are considering two options for legalization. One option involves creating a brand new category specifically for crypto mining within the OKVED database. Alternatively, they could add mining to an existing classification.

Financial Incentive for Legalization

The Ministry of Finance seems particularly keen on legalization, anticipating a potential tax windfall from a legitimized mining industry. Miners themselves are eager to escape the legal gray zone, and the country's biggest mining firm, BitRiver, has already made unsuccessful attempts to influence legislation.

Russia vs. US: The Mining Race?

The head of the Russian Industrial Mining Association (IPM) sees an opportunity to dethrone the US as the global leader in crypto mining, citing Russia's more favorable market conditions. The IPM has also indicated that Russian miners are prepared to invest a staggering $4 billion into the industry.

Will Russia Embrace Crypto Mining?

With various ministries leaning towards legalization and significant potential benefits, the future looks promising for Russia's crypto mining industry. However, the Central Bank's opposition and the final decision from the Ministry of Industry and Trade remain significant hurdles to overcome.