Crypto Miners Account for Over 2% of Russia’s Electricity Consumption, Estimate Suggests – Bitcoin News

The share of crypto miners in Russia’s energy consumption structure is already over 2%, according to a new government estimate. In this context, the country’s Ministry of Industry believes that it is time to bring the sector out of the shadows and regulate it.

Crypto miners burn more electricity than Russian farmers

Miners mining digital currencies account for more than 2% of the total volume of electricity consumed in the Russian Federation and their activities must be “whitewashed” and regulated, Russian Deputy Minister of Industry and Trade Vasily Shpak has stated. Speaking at a forum organized by the ruling United Russia party, Shpak explained:

This is more than the cost of electricity for agriculture. In this sense, we cannot fail to recognize mining as an industry.

Cryptocurrency mining is now in the “grey zone”, it is not taxed in any way and creates risks for those who participate in it, the government official noted during the event dedicated to the development of blockchain technologies and the regulation of digital financial assets. . Shpak is convinced that the industry can come out of the shadows and become transparent to the state.

The deputy minister expects that in the future the amount of electricity spent on mining will decrease as the industry moves towards less energy intensive mining protocols. However, it is obvious that mining facilities will continue to consume energy, Shpak was quoted as saying by Interfax. He further emphasized:

Our position is completely unequivocal: mining must be recognized, regulated and established as an industrial activity.

Bitcoin mining is one of the key cryptocurrency-related activities that Russian authorities are now working to legalize, despite the Bank of Russia’s call for them all to be banned. A bill designed to achieve this was introduced in the Russian parliament in late April. The bill was recently revised and lawmakers withdrew a proposal to introduce a one-year tax and customs amnesty for mining entities.

Officials in Moscow believe Russia should develop the sector, citing its competitive advantages in terms of abundant energy resources and a favorable climate. However, amid Western sanctions imposed over the invasion of Ukraine, Russian miners have been targeted to deny the country opportunities to circumvent the restrictions. Russia’s share of the global average monthly hash rate has fallen to 4.66% this year.

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bill, Bitcoin, Bitcoin Mining, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, bill, Electricity, Energy, Hashrate, Legislation, Miners, mining, power, Regulation, Regulations, Russia, Russian, share

Do you think electricity consumption in Russia’s crypto mining sector will continue to grow after the industry is regulated? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’s quote: “Being a writer is who I am, rather than what I do.” In addition to crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

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