The Central Bank of Russia refused to launch the National Mining Pool (NMP) project, which involved collective mining of cryptocurrencies to use surplus electricity.
The initiative was proposed by the Russian Association of Cryptocurrencies and Blockchain (RACIB), however, according to the regulator, such a project does not comply with the national policy in the field of cryptocurrencies. In addition, according to Dmitry Dubynin, Deputy Director of the Financial Technologies Department of the Bank of Russia, the launch of such a mining pool is associated with high risks of money laundering.
However, the Association does not agree with the refusal. On August 31, RACIB President Yuri Pripachkin sent an official letter to the head of the Bank of Russia Elvira Nabiullina, in which he indicated that during the testing of the project in the regulatory sandbox, the interaction scheme, as well as the risks and benefits, had been fully worked out. Pripachkin stressed that the scheme of the project will not allow money laundering, and the operations with cryptocurrencies themselves are in full compliance with the laws of the Russian Federation.
“As a result of piloting by the applicant, it was unequivocally shown that the project does not contain the technical possibility for the participation of unauthorized and unidentified persons in it, as well as the possibility of the appearance in it of an“ external ”cryptocurrency not received within the framework of the project,” writes the President of RACIB.
As part of the IMP project, miners could legally mine cryptocurrencies in Russia and sell them for rubles or currency, and taxes would replenish the country’s budget. At the moment, illegal or foreign exchanges and exchangers are used to exchange cryptocurrencies. The ban on the launch of the project is the simplest solution for the regulator, but no one benefits from this, says Alexander Brazhnikov, RACIB executive director.
“RACIB is constantly trying to find a common language with the Central Bank of Russia, so that the same miners who are in the country pay taxes in Russia, and not somewhere else. These taxes will benefit the state, they will bring even more than the sale of weapons. We have excellent natural conditions, cheap electricity, specialists. Miners, IT specialists, developers of various solutions are leaving Russia due to the fact that we do not have normal legislation, ”said Brazhnikov.
As a reminder, back in May, Russia prepared a draft law on the regulation of cryptocurrencies. However, industry participants expressed negative comments about the content of the document. The Ministry of Justice of the Russian Federation also expressed criticism.