In Russia, crypto mining is considered to be in the “gray zone,” which means that while it isn’t illegal, it isn’t regulated, posing hazards to those participating.
According to the most recent official estimate by Russian government, crypto miners consume 2% of Russia’s overall power usage.
After falling out of the top three in worldwide Bitcoin (BTC) mining hash rate share, Russia’s crypto mining business now consumes more energy than the country’s agricultural sector, indicating indications of recovery.
Following the latest mining estimate, Russia’s Deputy Minister of Trade and Business, Vasily Shpak, advocated for putting the mining industry under the law. He stated:
Do you know how much mining contributes to our country’s overall power generating map? And I’ll tell you: it’s more than 2%. This is greater than the cost of agricultural power. We can’t help but think of mining as an industrial activity or industry in this context.
In Russia, crypto mining is classified as a “gray zone.” It is not only not prohibited, but it is also not regulated, posing a risk to people who work in the business. After the crypto mining business is regulated, the deputy minister promises that it will shift to more energy-intensive technologies.
The proposals for crypto mining regulation came only days after the country’s MPs proposed an amended version of the crypto mining bill. Two sub-sections of the amended law were removed: the need for mining operators to join a special registry and a one-year tax amnesty for all those who have registered.
Apart from the country’s deputy minister of commerce, Prime Minister Mikhail Mishustin has also called for an investigation into the crypto mining business. Mishustin stated in April:
We also believe that we may address mining problems, such as the building of data centers and related infrastructure, in order to drive investment, particularly in fixed capital.
On the other hand, the Russian central bank continues to advocate for a complete ban on mining operations in the nation.
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According to the latest data from the Cambridge Bitcoin Electricity Consumption Index, Russia’s BTC mining hash rate share has plummeted to 4.55 percent, trailing Kazakhstan, China, and the United States (CBECI).