According to a government report by Russia, crypto miners use over 2% of power consumption. Hence, officials are calling for a regulation of the sector.
Crypto Miners Use More Electricity Compared To Agriculture
According to the latest report, miners in Russia consume more power than farmers. Currently, crypto miners use over 2% of total electricity consumption in the country.
Hence, Vasily Shpak, Deputy Minister for Industry and Trade, has discussed the matter. He has called for regulation of the sector and its activities. Shpak told a forum organized by the United Russia party that;
“Crypto mining consumes more electricity compared to the agricultural sector. Hence, we must see crypto mining as a sector on its own.”
Presently, the government has placed no tax on crypto mining. It is in the grey region. This creates some risk for investors in the area.
The deputy minister wants the sector to be recognized and not operate in the shadows. This will allow for more transparency and improved accountability for all stakeholders.
Shpak believes that the amount of power consumption spent by crypto miners will drop soon. This is because the crypto sector is driving towards the use of sustainable mining protocols.
Also, green energy mining is becoming a norm in the industry. However, mining equipment will certainly consume lots of power for now. He further stated that;
“Our position on crypto mining is clear. We call for recognition, regulation, and proper establishment of the sector. Crypto mining should be seen as an industrial operation in Russia.”
Russia’s Average Monthly BTC Mining Hashrate Drops
Recently, Bitcoin mining has been receiving significant attention from the Russian authorities. The government is moving to regulate and legalize the sector due to the benefits. This regulation is against the intention of Russia’s central bank, which called for a ban.
In April, the crypto regulation bill was sent to the parliament. After revision by lawmakers, they removed the proposal to implement mining tax and customs incentives. Despite the sanctions, Russia has seen a large inflow of miners.
Russian officials in the capital, Moscow, call for the development of the mining sector. They believe Russia has a greater advantage for crypto mining than other nations. They noted the country has a suitable climate and abundant power supply.
Unfortunately, the recent sanctions on Russia by the west have affected miners in the state. Several sanctions were imposed on crypto miners to prevent the country from bypassing restrictions.
As a result, the monthly mining hash rate of the country has dropped. For 2022, the country’s monthly average hash rate is about 4.66%.