Russian Government Divided Over Energy Restrictions for Cryptocurrency Miners

The Russian State Duma is at odds with the Ministry of Energy over proposed restrictions on power supply to cryptocurrency miners. Reported on January 26, 2024, this contentious issue highlights the growing tensions between government bodies over the regulation of the burgeoning crypto mining industry. The Ministry of Energy, aiming to mitigate power shortages, has suggested disconnecting miners from the power grid for up to 500 hours annually, a move supported by the Association of Industrial Mining, according to Coinspot.

This proposal, however, has faced criticism from the State Duma, with Deputy Andrei Lugovoi leading the dissent. Lugovoi contests the need for increased tariffs and energy supply limitations for miners, labeling the initiative “controversial.” He argues that such measures would not only impede the growth of cryptocurrency mining in Russia but also diminish the country’s investment appeal. Instead, Lugovoi advocates for creating favorable conditions to foster the growth of the crypto mining sector.

The deputy emphasizes that the solution to energy shortages lies not in curtailing mining activities but in more comprehensive measures. These include expanding the energy infrastructure’s capacity, suggesting a broader approach to addressing the challenge. This disagreement reflects the complexities and conflicting interests in regulating an industry that is rapidly evolving and increasingly significant in the global economy.