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

The share of crypto miners in Russia’s power consumption structure already exceeds 2%, according to a new government estimate. On this backdrop, the country’s industry ministry believes it’s time to bring the sector out of the shadows and regulate it.

Cryptominers burn more electricity than Russian farmers

Miners extracting digital currencies account for more than 2% of the total volume of electricity consumed in the Russian Federation and their activities need to be “whitewashed” and regulated, Russia’s Deputy Minister of Industry and Trade Vasily Shpak stated. Shpak spoke at the forum hosted by United Russia.

This goes beyond the price of electricity to power agriculture. Mining is an industry in this way.

Cryptocurrency mining is now in the “gray zone,” it’s not taxed in any way and creates risks for those involved in it, the government official noted during the event devoted to the development of blockchain technologies and the regulation of digital financial assets. Shpak is confident that cryptocurrency mining can be brought out from under the radar and made accessible to the government.

According to the deputy minister, the mining industry will move towards more energy-efficient mining methods in the future. Nevertheless, it’s obvious that mining facilities will continue to consume power, Shpak said, quoted by Interfax. He added:

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

Bitcoin mining is one of the key crypto-related activities that Russian authorities are now working to legalize, despite Bank of Russia’s call for a blanket ban on all of them. In late April, a bill was submitted to the Russian Parliament. Legislators recently amended the draft and redrafted a proposal for a 1-year tax- and customs exemption for miners.

Moscow officials believe Russia should expand the sector due to its favorable climate and abundant energy resources. Russian miners are being targeted by sanctions in response to western sanctions imposed for Ukraine’s invasion. Russia’s share in the average global monthly hashrate has dropped to 4.66% this year.

Do you think the electricity consumption in Russia’s crypto mining sector will continue to grow after the industry is regulated? Please share your thoughts in the comment section.

Lubomir Tatsev

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