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- As per a latest estimate issued by the Russian government, crypto miners are consuming 2% of entire electricity dispersed in the nation.
- Due to such claims, the industry minister stated that it is now time to put regulations on such activities to prevent such happenings.
- As this article was being written, crypto sphere had a market capitalization of $1.21 Trillion, with Bitcoin dominating the market.
This is Too Much
Miners mining virtual currencies utilise more than 2% of the total power utilized in the Russian Federation, and their actions must be “whitewashed” and controlled, according to Vasily Shpak, Russia’s Deputy Minister of Industry and Trade.
At a symposium hosted by the governing United Russia party, he said, This is greater than the cost of agricultural power. In this sense, we can’t help but think of mining as a business.
The Gray Zone
The government official highlighted during the event dedicated to the advancement of blockchain technology and the administration of virtual financial assets that cryptocurrency mining is currently in the “gray zone,” where it is not taxed in any manner and poses hazards to those engaged.
Shpak believes the sector can be taken out of the shadows and made more transparent for the government.
According to the deputy minister, as the mining sector progresses toward less energy-intensive mining procedures, the amount of power consumed on mining will decrease in the future.
Nonetheless, mining operations would undoubtedly continue to consume electricity, according to Shpak.
He went on to say that, mining must be acknowledged, controlled, and developed as an industrial activity, according to our stance.
Considering the Bank of Russia’s demand for a blanket ban on all crypto-related operations, Russian officials are currently seeking to legitimize bitcoin mining as one of the most important crypto-related enterprises.
In late April, the Russian parliament received a measure aimed at achieving this goal. The draft legislation was recently updated, and MPs dropped a provision to provide mining companies a one-year tax and customs amnesty.
Russian officials believe the industry should be developed, noting the country’s competitive advantages in terms of plentiful energy resources and a good environment.
However, as a result of the sanctions implemented by the West in response to the invasion of Ukraine, Russian miners have been attacked with sanctions, denying the nation the ability to get around the limitations.
This year, Russia’s contribution of the worldwide average monthly hashrate fell to 4.66 percent.
ALSO READ: This Boston-Based Accounting Firm Now Accepts Crypto-Payments Including $SHIB, $DOGE
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
