Miners’ share of Russia’s power consumption structure exceeded 2%

Deputy Industry and Trade Minister Vasiliy Shpak believes that cryptocurrency mining in the country needs to be “whitewashed” and regulated

29.05.2022 - 07:25

549

2 min

What’s new? Russian miners account for more than 2% of the country’s total power consumption, Deputy Industry and Trade Minister Vasiliy Shpak reported. The official added that cryptocurrency mining has overtaken agriculture in terms of this indicator, which is why he believes it is necessary to recognize it as an industrial activity or a separate industry. Shpak also recalled that mining is now in a “grey” zone in the Russian Federation. In his view, the market needs to be “whitewashed” and regulated. He is quoted as saying by Interfax.

Interfax’s material

What else did Shpak add? Deputy Industry and Trade Minister believes that the lack of regulation of mining in the Russian Federation carries risks for those who engage in it.

“In the near future, less energy will be spent on mining in general, because the world is switching in terms of digital currencies to other protocols, less expensive [than those] by which bitcoin is being mined now. [...] Our position here is absolutely unambiguous: mining should be recognized, regulated, and integrated into industrial activity,” Shpak added.

Regulation of mining in Russia. On April 29, deputies from the “New People” party submitted the draft law “On Mining in the Russian Federation” to the State Duma. According to the document, miners would be required to record the cryptocurrencies mined, their types, contracts with users, and crypto providers or financial institutions that work with digital assets. On May 24, an updated version of the draft law was submitted. It excluded provisions on the creation of a register and tax amnesty for mining participants.

Andrei Lugovoy, a member of the State Duma working group on the legislative regulation of cryptocurrency believes that Russia may become a leader in digital asset extraction. He noted that the Cabinet of Ministers’ upcoming laws should “bring millions of grey miners out of the shadows.”

Author: