Russia To Regulate Crypto Mining Despite Surge In Electricity Consumption


Russian deputy head of the Ministry of Industry and Trade in a speech today on the United Russia discussion platform revealed the country’s move to regulate crypto mining. He spoke about the development of blockchain technologies and the regulation of digital financial assets.

Crypto mining consumes more electricity than agriculture

It has been said that crypto mining consumes more than 2% of Russia’s total electrical energy even though mining activities fall within the gray zone. That is, even more than the total supply of energy consumed by Agriculture. He talks about legalizing cryptocurrency mining in Russia started after a proposal to ban all cryptocurrency activities in the country was published in a report by the country’s Central Bank.

Speaking early last month, Russian Prime Minister Mikhail Mishustin revealed that the government and the Central Bank were in agreement on a ban on cryptocurrency as legal tender, although mining activity was the subject of discussion.

According to Shpak, while cryptocurrency is currently in the gray zone, its high electricity consumption makes it worthy of being considered an industrial activity. He believes that “mining must be recognized, regulated and integrated into industrial activity.”

New Russian Crypto Bill Nullifies Amnesty Promise to Crypto Miners

According to the chamber’s website, a draft law “On mining in the Russian Federation” was submitted to the lower house of the Russian parliament, the State Duma, on the last Friday of April.

The bill requires all crypto users and miners in the country to register and mining rights will only be granted to registered entities. An amnesty program was put in place to allow registered miners to pass through customs.

Less than a month later, the crypto mining bill is redrafted. The new bill, which was introduced to the chamber last Friday, has seen several key points omitted from the first draft. From an overall perspective, the text contained in the bills has not changed, but certain subsections have been found to be missing. Two pending subsections that are now missing are the provision of a mining registry for registered users and the promise of amnesty for those registered users.

The absence of a mining registry means that there is a provision for a standard procedure for companies wishing to be corporately registered. The amnesty promise has been canceled as they “could possibly incur costs in the federal budget.”

Sunil is a serial entrepreneur and has been working in the blockchain and cryptocurrency space for 2 years. He previously co-founded Govt. from India supported startup InThinks and is currently Editor-in-Chief of Coingape and CEO of SquadX, a fintech startup. He has published more than 100 articles on cryptocurrencies and blockchain and has helped several ICOs achieve success. He has co-designed industry blockchain development training and has hosted many interviews in the past. Follow him on Twitter at @sharmasunil8114 and contact him at sunil (at) coingape.com

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