Russia to focus on social development over Bitcoin mining

The Russian Ministry of Energy announced that it would prioritise using its energy resources for social development rather than Bitcoin (CRYPTO:BTC) mining.

Energy Minister Sergei Tsivilev stated that surplus energy from certain areas could be made available to legal and registered Bitcoin miners operating outside the "gray" zone.

Despite recent crypto-related regulations that could position Russia as a Bitcoin mining hub, the country is focusing its energy resources on supporting social and industrial development.

At the Eastern Economic Forum in Vladivostok, Tsivilev explained that surplus energy from power plants could be allocated to Bitcoin mining companies to maintain plant operations at full capacity.

Running power plants below expected demand levels negatively impacts their economic performance, so surplus energy could be sold to miners to offset these issues.

Tsivilev emphasised that only surplus energy would be offered to miners, and only under the condition that these miners are legally registered and comply with tax regulations.

Many Bitcoin miners in Russia currently operate in a "gray" zone, without official recognition or regulation.

In August, President Putin signed a cryptocurrency mining law that regulates the industry, moving it out of the gray zone.

This law allows the government to ban cryptocurrency mining in certain regions, a point of contention for crypto-mining associations due to the potential disruptions it may cause.

Tsivilev reiterated that the government's top priorities remain the "social development program" and "the development of our industry," suggesting that these goals take precedence over expanding Bitcoin mining.

At the time of reporting, Bitcoin price was $54,135.30.