Russia may soon be mining cryptocurrency on its oil rigs. Deputy head of Russia’s Ministry of Industry and Trade, Vasiliy Shpak presented the proposal to mine crypto using Associated Petroleum Gas (APG) in an effort for local companies operating APG-powered platforms at sea or land locations that could generate power through it with plans being considered by Russian authorities including clarification over regulatory issues around this practice necessary before implementation can begin immediately following approval – reports Kommersant Online Edition last week Wednesday, September 7th, 2018 edition).
Experts say that the project may be of interest to foreign investors primarily from China, where mining is prohibited. Unfortunately for them though there’s been a law in Russia since 2013 regulating how digital currencies are allowed and when they can start circulating – but it isn’t yet adopted so far as we know!
About Crypto Mining Proposal
The Ministry of Industry and Trade told Kommersant that the initiative came from market participants – local oil companies. They proposed to use associated gas, which is a byproduct in crypto mining operations for powering nearby data centers with natural electricity sources like coal or wind power but requires more energy input per unit output due at times there’s not enough sun available on demand!
The Ministry of Industry and Trade told Kommersant that the initiative came from market participants – local oil companies. They proposed using associated gas in order to power nearby data centers for mining crypto, with this type being flare gas which is a byproduct of the extractions process but can also release carbon dioxide into the atmosphere because there’s not enough infrastructure available at present time.
Russia’s Ministry of Industry and Trade has reportedly proposed the use of natural gas for crypto mining, according to Kommersant. The Russian government is attempting to reduce emissions from flare gas but so far it hasn’t been able to meet its targets due in part because there isn’t enough infrastructure required
For example: “Shpak suggested using these by-products as an alternative fuel source within thermal generation plants — with hybrid modules containing digital currency extraction.”
A source close to the Ministry of Industry and Trade said that a Russian oil company has approached them for advice on whether they can scale up their crypto mining project. This would be in direct contravention with current legislation which does not allow any kind of commercialization or extraction from this industry until 2020 at least unless an exception is made by law – but since Gazprom Neft already operates small flare gas-powered farms without much scrutiny it’s hoping there are no adverse consequences if it chooses proactively self regulate instead…
What Authorities Respond
Russian Central Bank officials have criticized a recent proposal for digital currency regulation. In an exclusive interview with Kommersant, they said that while some aspects of the law are innovative and future-facing in nature it still falls short by not being able to provide clarity on how circulation will occur — which is integral if this new form of money hopes to take off as planned
The Ministry of Digital Affairs did not respond when asked about its opinion on these comments from within Russia’s financial institutions.
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