The latest report revealed that the Ministry of Energy in Russia is currently pushing for the legalization of cryptocurrency mining in the country. The policymakers intend to introduce a bill to regulate mining activities and keep miners in check as they move to legalize the act.
According to the report from a Russian news agency, Tass, the Ministry of Energy in Russia revealed its plans for legalizing industrial mining of crypto during the recent International Economic Conference held in St. Petersburg.
The Russian Vice Minister of Energy, Pavel Snikkars, reportedly stated during the meeting that the ministry fully supports mining and urges the policymakers to implement tax rules for crypto miners in the country.
In addition, Snikkars said the ministry wants crypto miners to be legally recognized as significant consumers in the country’s energy sector. He added that taxing miners is an important step for the ministry to identify them.
Furthermore, the Vice Minister stated that the ministry understood that the nation would have to introduce some regulations to control miners’ activities. More so, he said the ministry is planning on suggesting some regulations that may help the government tame miners in generating capacities.
Russian Ministry Of Energy Aim To Legalize Crypto Mining
Recently, many crypto mining rigs have emanated from Russian origins. According to reports, Irkutsk Oblast in Siberia is one of the most popular of them all. However, the mining hotspot seems to have been engaged with some complex mining issues.
Reports showed that authorities at Irkutsk are constantly complaining that the mining activities in the area are draining local energy resources. However, they seem equally okay as they support some mining activities to thrive.
In addition, reports revealed that many of the issues arising from crypto mining activities are because the industry is yet to be legally recognized in Russia. Consequently, this restricts energy regulators from charging industrial miners in proportion to their electricity consumption.
Hence, miners enjoy subsidized fees for their activities as a normal Russian citizen would. However, while lawmakers are reluctant in finding a solution, the Ministry of Energy has decided to take action.
The ministry reportedly plans to legally recognize crypto miners as energy consumers, this would allow them to be charged at higher rates according to their consumption. However, the ministry found the impulsive move a bit faulty.
Therefore, it proposed that a certain energy consumption rate should be created for crypto miners. This rate would be different from the rates they charge for normal residential and industrial energy consumption.
Meanwhile, crypto miners in Russia had long been clamoring for the government to legalize mining in the country, according to a report. Also, the Russian mining sector ranks second in the world, coming behind the USA.
Conclusively, Snikkars advised that if miners are allowed to continue their activities without regulations, the masses would continue to pay for their high energy consumption bills. Hence, he said the ministry would ensure industrial crypto mining is duly legalized, regulated, and Taxed to sustain energy stability in Russia.