It is estimated that crypto miners account for more than 2% of Russia’s electricity consumption – Bitcoin News

According to a new government estimate, the share of crypto miners in Russia’s electricity consumption structure has exceeded 2%. Against this backdrop, the country’s Ministry of Industry believes that it is time for the industry to step out of the shadows and regulate it.

Crypto miners consume more electricity than Russian farmers

Vasily Shpak, Russia’s Deputy Minister of Industry and Trade, said miners extracting digital currencies account for more than 2 percent of the Russian Federation’s total electricity consumption, and their activities need to be “whitewashed” and regulated. Speaking at a forum organized by the ruling United Russia party, Shpak elaborated:

This exceeds the cost of agricultural electricity. In this sense, we have to admit that mining is an industry.

At an event dedicated to the development of blockchain technology and the regulation of digital financial assets, the government official noted that cryptocurrency mining is now in a “grey area,” which is not taxed in any way and poses risks to those involved in it . Shpak believes that the industry can come out of the shadows and make the country transparent.

The deputy minister expects less electricity to be used for mining in the future as the industry moves towards less energy-intensive mining protocols. Nonetheless, it is clear that mining facilities will continue to consume electricity, Interfax news agency quoted Shpak as saying. He further emphasized:

Our position is completely clear – mining must be recognised, regulated and established as an industrial activity.

Bitcoin mining is one of the main crypto-related activities that Russian authorities are currently working to legalize, although Russian banks call A blanket ban on all of them.The bill that aims to achieve this is archive Late April with the Russian Parliament.The draft legislation recently Revise Lawmakers withdrew a proposal for a one-year tax and customs amnesty for mining entities.

Officials in Moscow argue that Russia should develop the industry, citing its competitive advantage in terms of abundant energy resources and favorable climate.However, in the West’s punishment for invading Ukraine, Russian miners have been targeted Sanctions to deprive the country of the opportunity to circumvent the restrictions.Russia share The global average monthly computing power has dropped to 4.66% this year.

tags in this story

bill, bitcoin, bitcoin mining, consume, cryptocurrency, crypto miner, crypto mining, cryptocurrency, cryptocurrency, drafting a bill, Electricity, vitality, computing power, legislation, miner, mining, strength, Regulation, regulations, Russia, Russian, share

Do you think electricity consumption in the Russian crypto mining industry will continue to grow after industry regulation? Share your expectations in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.

Source link