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Russian oil companies offer to mine cryptocurrencies in their wells – Mining Bitcoin News

Companies involved in oil production in Russia have launched a project to organize the mining of cryptocurrencies right next to the oil fields that they are exploiting. Data centers dedicated to coin mining can be powered by excess gas released during oil extraction that would otherwise go to waste.

Ministries and Central Bank Review Crypto Mining Project by Russian Oil Industry

Government institutions in Moscow are now discussing an initiative launched by Russian oil companies to begin mining cryptocurrency at their extraction sites. The industry is proposing to use the associated petroleum gas (APG) to generate electricity which can be used in the energy-intensive process of digital coin mining.

Experts say the project could potentially attract foreign investors, mainly from China where authorities are cracking down on bitcoin mining this year. Industrial activity is effectively banned in the People’s Republic, while mining is not banned in the Russian Federation, although it is also not properly regulated.

The Ministry of Industry and Trade has recently asked the Ministry of Digital Development and the Central Bank of Russia (CBR) for their feedback on the idea, Russia’s leading business daily Kommersant quoted a letter sent by Industry Deputy Minister Vasily Shpak. Told. His department specifically asks the monetary authority whether this would be a legitimate undertaking.

The main act regulating cryptocurrencies in Russia is the “On Digital Financial Assets” law that came into force earlier this year. However, in Russia there is a need for additional legislation regarding their circulation and related functions. The legalization of crypto mining as an industrial activity is finding support in government circles with Anatoly Aksakov, chairman of the Parliamentary Financial Markets Committee, saying in September that it should be registered as such and taxed accordingly.

Kommersant also cited a source close to the Ministry of Industry, who revealed that one of the big Russian oil companies already has a crypto mining project underway and is looking to scale it up. “But this section is legally in gray zone and the company fears negative reaction from the central bank, so it approached the ministry [of Industry] who can discuss the risks with the regulator,” the person in the know told the newspaper.

According to official information available, so far only state-run Gazprom Neft, a subsidiary of Russian energy giant Gazprom and the third largest oil producer in the country, has an actual mining project. The company launched it at its oilfield in Khanty-Mansi Autonomous Okrug, a field in Tyumen Oblast. According to a January report, the oil giant managed to mine 1.8 BTC in a single month. Gazprom Neft declined to comment on the matter.

Do you think Moscow authorities will allow Russian oil companies to mine cryptocurrencies in their oil wells? Tell us in the comments section below.

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authority, bitcoin mining, cbr, central bank, coin mining, crypto farm, crypto mining, cryptocurrency mining, data center, excess energy, gas, gazprom, gazprom neft, initiative, institute, mining, ministry, oil companies, oil extraction , oil field, oil production, oil wells, petroleum gas, project, russia, russian

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