{"id":24817,"date":"2023-06-20T03:33:49","date_gmt":"2023-06-20T07:33:49","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/russian-energy-ministry-wants-legal-crypto-mining\/"},"modified":"2023-06-20T03:33:51","modified_gmt":"2023-06-20T07:33:51","slug":"russian-energy-ministry-wants-legal-crypto-mining","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=24817","title":{"rendered":"Russian Energy Ministry Wants Legal Crypto Mining"},"content":{"rendered":"
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Russia\u2019s Ministry of Energy is pushing for the legalization of industrial crypto mining, and wants lawmakers to press ahead with a much-anticipated mining-related bill.<\/p>\n

Per the Russian news agency Tass, the ministry made the comments at the weekend, during the St. Petersburg International Economic Forum.<\/p>\n

Pavel Snikkars, the Energy Vice Minister, said that the ministry \u201csupports\u201d the legalization of mining and \u201cexpects\u201d lawmakers to approve \u201cthe introduction of taxation for miners.\u201d<\/p>\n

Snikkars said:<\/p>\n

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\u201cWe want [crypto] miners to be recognized as a category of [energy] consumers. We hope that taxation will also be introduced for this category of consumers. It is important for us to be able to identify [crypto miners].\u201d<\/p>\n<\/blockquote>\n

The Vice Minister added:<\/p>\n

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\u201cWe understand that certain regulatory features will have to be introduced for [crypto miners].\u201d<\/p>\n<\/blockquote>\n

Russian Energy Ministry: Time to Legalize Crypto Mining<\/h2>\n

Snikkars added that the Ministry of Energy was also planning to propose \u201ccertain restrictions\u201d on the \u201cgenerating capacities\u201d made available to miners.<\/p>\n

A number of crypto mining hotspots have sprung up in Russia in the past few years.<\/p>\n

Perhaps the most notable of these is the Irkutsk Oblast in Siberia, which has entered into a somewhat complicated relationship with crypto mining.<\/p>\n

The Irkutsk authorities have complained that miners are placing a strain on local energy resources, but have conversely seemed keen to allow some form of industrial mining to flourish.<\/p>\n

Much of the problem centers around the fact that crypto mining is not recognized as an industry in Russia.<\/p>\n

As such, in most situations, energy firms cannot charge miners at industrial rates.<\/p>\n

Instead, many miners are charged at (subsidized) residential rates.<\/p>\n

The ministry has attempted to intervene while lawmakers drag their feet, allowing energy providers to identify miners and bill them at higher rates.<\/p>\n

But this imperfect solution has been found lacking.<\/p>\n

And the ministry instead proposes creating a special crypto mining rate, which would be separate from both industrial and residential rates.<\/p>\n

Miners themselves have long called for Moscow to \u201churry up\u201d and legalize their industry.<\/p>\n

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The Vice Minister warned that \u201cthe whole country\u201d could \u201cpay\u201d if miners were allowed to continue unchecked.<\/p>\n

Snikkars concluded:<\/p>\n

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\u201c[We will ensure that] the needs of this particular category of energy consumers is represented with regulation and legislation. And we will try to bring stability to this situation.\u201d<\/p>\n<\/blockquote><\/div>\n