Crypto Miners Make Up Over 2% Of Russia’s Electricity Consumption, According To Estimate CryptoBlog

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The share of crypto miners in Russia’s energy consumption structure already exceeds 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 consume 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, said the Russian Deputy Minister of Industry and of Commerce, Vasily Shpak. 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 can only 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 involved, the government official noted at the tech development event blockchain and the regulation of digital financial assets. Shpak is convinced that the industry can be brought out of the shadows and made 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. Nevertheless, it is clear that mining facilities will continue to consume energy, Shpak said, quoted by Interfax. He further pointed out:

Our position is unambiguous: mining must be recognised, regulated and established as an industrial activity.

Bitcoin mining is one of the major crypto-related activities that Russian authorities are currently working to legalize, despite the Bank of Russia’s call for a blanket ban on all. A bill designed to achieve this was tabled 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 for the invasion of Ukraine, Russian miners have been targeted with sanctions to prevent the country from circumventing restrictions. Russia to share in the average global monthly hashrate fell to 4.66% this year.

Keywords in this story

bill, bitcoin, bitcoin mining, consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, bill, Electricity, Energy, Hashrate, Miners, power, Russia, Russian, share

Do you think electricity consumption in the Russian crypto mining sector will continue to grow after industry regulation? Share your expectations in the comments section below.

Lubomir Tassev

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

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