Russia’s Ministry of Economic Development suggested crypto mining be permitted in regions rich in energy and that miners have access to cheap electricity. The department has joined calls to legalize the industry and utilize Russia’s strengths as a mining destination.
Economy Ministry says that Crypto Miners should have access to cheaper power
Amid ongoing discussions on the future of cryptocurrencies in Russia, the country’s Ministry of Economic Development has proposed permitting the minting of digital currencies in regions with a surplus of electricity, and the adoption of acceptable rates for mining companies. The Ministry of Economic Development believes that this will help address the power shortfalls faced by other regions and households.
The proposal also envisages a reduction of the tariffs for connecting mining farms and data processing centers to energy sources, the Russian daily Izvestia reported, quoting the department’s press service. Federal Grid Company (FGC), according to the ministry, is also asked to reduce its transmission fees.
According to the ministry of economy, cryptocurrency extraction should be considered a business activity. Taxes will also need to be levied on the conversion of digital coins into rubles. Moscow, as well as other regions like Irkutsk have supported this regulatory approach. Residents in these areas are experiencing an increase in their power consumption.
The ministry has put forward another proposal in that context — to introduce a threshold for electricity usage by private individuals. A consumer who exceeds the limit could be accused of operating an energy-hungry miner’s equipment. The country would be forced to raise tariffs (or the commercial rates that businesses pay) in this instance.
One of the topics being debated by various Russian authorities is the status crypto mining. The Ministry of Energy, like the Ministry of Economic Development has supported crypto regulation, while the Bank of Russia would prefer to ban crypto trading.
In January, President Vladimir Putin urged government institutions to reach a consensus on the matter and highlighted the “competitive advantages” of Russia in regards to mining. Putin referred to Russia’s surplus electrical power and its qualified workforce. Russia’s importance as a mining hotspot has increased since China cracked down on the industry last May.
What do you think Russia’s regulations will be for cryptocurrency miners in the future? Comment below to share your hopes and fears.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerInformational: It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.