Russian Ministry of Energy Backs Legalization of Industrial Crypto Mining, Urges Taxation

Russia’s Ministry of Energy advocates for the legalization of industrial crypto mining and urges lawmakers to proceed with a long-awaited mining-related bill. The ministry expressed its support during the St. Petersburg International Economic Forum, with the Energy Vice Minister emphasizing the need for miners to be recognized as a category of energy consumers. The ministry also expects the introduction of taxation for miners and plans to propose restrictions on generating capacities. 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 mining-related bill by lawmakers. During the St. Petersburg International Economic Forum, Energy Vice Minister Pavel Snikkars highlighted the ministry’s stance on mining, expressing the need for miners to be acknowledged as a specific category of energy consumers. The ministry also expects taxation to 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 emphasized that regulatory measures specific to crypto mining must be implemented.

The Ministry of Energy is also considering proposing restrictions on the generating capacities 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 had a complex relationship with mining. Local authorities have expressed concerns about the strain placed on energy resources by miners but have shown interest in facilitating industrial mining to some extent.

The lack of official recognition of crypto mining as an industry in Russia has led to challenges. Energy companies typically cannot charge miners at industrial rates and instead apply subsidized residential rates. The ministry has intervened by allowing energy providers to identify miners and bill them at higher rates. However, this solution has proven inadequate. To address the issue, the ministry proposes establishing a special crypto mining rate separate from both industrial and residential rates.

Miners have long urged the Russian government to expedite the legalization of their industry. The Vice Minister warned of potential consequences for the country if mining activities continue without proper regulation. Snikkars concluded by emphasizing the ministry’s commitment to representing the needs of this specific category of energy consumers through appropriate regulations and legislation to bring stability to the situation.

Russia’s Ministry of Energy has expressed its support for legalizing industrial crypto mining and has called for introducing taxation for miners. With the recognition of miners as energy consumers, the ministry aims to establish regulatory measures and propose restrictions on generating capacities. The move highlights the need to address the complexities of accommodating crypto mining within Russia’s energy landscape. As the country moves toward regulating the industry, miners hope for a clear legal framework to ensure stability and avoid potentially adverse impacts on the nation.