Russia’s Ministry of Energy advocates for the legalization of industrial crypto mining and urges parliamentarians to proceed with the long-awaited mining-related bill. The ministry expressed its support during the St. Petersburg International Economic Forum. Petersburg, with the Deputy Minister of Energy stressing the need for miners to be recognized as a category of energy consumers. The ministry also hopes to introduce a tax on miners and plans to propose limiting generating capacity. This move comes as Russia grapples with the complexities of accommodating crypto mining within its energy landscape.
Russia’s Ministry of Energy has voiced its support for the legalization of industrial crypto mining and called for the approval of a bill related to mining by parliamentarians. During the St. In St. Petersburg, Deputy Energy Minister Pavel Snikkars highlighted the ministry’s stance on mining, stating the need for miners to be recognized as a special category of energy consumers. The ministry also expects that taxation will be introduced for this group.
Snikkars stated, “We want miners to be recognized as a category of energy consumers. We hope that taxation will also be introduced for this category of consumers. We need to be able to identify crypto miners.” He further stressed that specific regulatory measures for crypto mining should be implemented.
The Ministry of Energy is also considering proposing a limit on the generation capacity allocated to miners. Over the past few years, Russia has witnessed the emergence of various crypto mining hotspots. One notable example is the Irkutsk Oblast in Siberia, which has a complex relationship with mining. Local authorities have expressed concern about the strain placed on energy resources by miners, but have shown an interest in facilitating industrial mining to some extent.
The lack of official recognition of crypto mining as an industry in Russia has posed challenges. Energy companies typically can’t charge miners at industry rates and instead apply subsidized housing rates. The ministry has intervened by allowing energy providers to identify miners and charge them higher rates. However, this solution proved inadequate. To solve this problem, the ministry proposed setting special crypto mining rates separate from industrial and residential rates.
Miners have long urged the Russian government to speed up the legalization of their industry. The Deputy Minister of Finance warned of potential consequences for the country if mining activities continue without proper regulations. Snikkars concluded by emphasizing the commitment of the ministry to represent the needs of this special category of energy consumers through appropriate regulations and laws to bring stability to the situation.
The Russian Ministry of Energy has expressed its support for legalizing industrial crypto mining and has called for the introduction of taxation of miners. With the recognition of miners as energy consumers, the ministry aims to establish regulatory measures and propose limiting generating capacity. The move highlights the need to overcome the complexities of accommodating crypto mining in the Russian energy landscape. As the country moves towards industrial regulation, miners hope for a clear legal framework to ensure stability and avoid potential adverse impacts on the country.