Russia’s Energy Ministry Charges Forward to Legalize Crypto Mining

  • Sergey Maga
  • 20 June, 2023 10:08
Russia’s Energy Ministry Charges Forward to Legalize Crypto Mining

The Russian Ministry of Energy is championing the cause of crypto mining legalization. During the St. Petersburg International Economic Forum, Energy Vice Minister Pavel Snikkars declared the ministry’s support. They anticipate lawmakers’ approval for the taxation of miners, according to cryptonews.

Snikkars envisions crypto miners as a distinctive energy consumer category. He argues that recognizing miners would lead to their taxation. Importantly, this move would allow for their identification, critical for energy consumption tracking.

The Vice Minister also flagged the need for unique regulatory features for crypto miners. Recognizing the growth in Russia‘s crypto mining, he suggested restrictions on the generation capacities allocated to miners. Locations like the Irkutsk Oblast in Siberia have emerged as crypto mining hubs, causing a strain on local energy resources.

Currently, crypto mining isn’t an acknowledged industry in Russia. Thus, energy firms can’t bill miners at industrial rates. Instead, most miners pay subsidized residential rates. This arrangement has proven insufficient, prompting the ministry to propose a special crypto mining rate.

The urgency for legalization and regulation grows as miners urge Moscow to act fast. Snikkars warns that unchecked mining could make the whole country “pay.” He committed to ensuring the regulation and representation of miners, aiming to bring stability to the situation.

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