Miners extracting digital currencies utilise more than 2% of the total electricity consumed in the Russian Federation, and their actions must be “whitewashed” and regulated, according to Vasily Shpak, Russia’s Deputy Minister of Industry and Trade.
Vasily Shpak further stated:
“This is greater than the cost of agricultural electricity. In this sense, we can’t help but think of mining as a business. Mining must be recognised, regulated, and established as an industrial activity, according to our position.”
During an event devoted to the development of blockchain technology and the regulation of digital financial assets, a government official stated that cryptocurrency mining is currently in the “grey zone,” where it is not taxed and poses risks to those involved. Shpak believes the government can bring the sector out of the shadows and make it more transparent.
The quantity of electricity consumed by mining will decrease in the future, according to the deputy minister, as the mining industry develops toward less energy-intensive mining protocols. According to Shpak, as quoted by Interfax, mining operations would surely continue to consume electricity.
Despite the Bank of Russia’s call for a blanket ban on all crypto-related activities, Russian authorities are now attempting to legitimise bitcoin mining as one of the most important crypto-related businesses. A bill aimed at achieving this goal was introduced in the Russian parliament in late April. When the draft legislation was recently modified, MPs rejected a clause that would have granted mining corporations a one-year tax and customs amnesty.
Officials in Russia believe the sector should be developed, citing the country’s competitive advantages in terms of abundant energy resources and a healthy environment as reasons. Russian miners, on the other hand, have been sanctioned as a result of the sanctions imposed by the West in reaction to the invasion of Ukraine, denying the country the capacity to circumvent the restrictions. Russia’s share of the global average monthly hashrate fell to 4.66 percent this year.
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