Russia’s Deputy Minister of Industry & Trade Calls For Regulation on Mining

Gazprom Neft Will Supply Energy to Bitcoin Mining Farms in Russia
  • Shpak believes in bringing the sector into the open and making it accountable.
  • Russia’s parliament was presented with a measure to accomplish legitimizing in late April.

Russia’s Deputy Minister of Industry and Trade, Vasily Shpak, said that the actions of miners extracting digital currency account for more than 2% of the country’s total power consumption and need to be “whitewashed” and controlled. 

Mining Presently in ‘Gray Zone’

Speaking at a United Russia party event, Shpak clarified during the event dedicated to the development of blockchain technology and the regulation of digital financial assets that cryptocurrency mining is presently in the “gray zone,” is not taxed in any manner, and poses hazards to those engaged. Shpak believes in bringing the sector into the open and making it accountable to the government.

According to the deputy minister, mining is expected to use less power in the future as the sector shifts to less energy-intensive mining practices. Nevertheless, Shpak was reported by Interfax as saying that mining operations would continue to use electricity.

However, Russia’s authorities are attempting to legitimize Bitcoin mining, despite the Bank of Russia’s demand for an all-out ban on all crypto-related operations. Russia’s parliament was presented with a measure to accomplish this in late April. A plan to provide mining companies a one-year tax and customs amnesty, included in the original draught, was recently removed by MPs.

Russia’s leaders in Moscow feel that its enormous energy resources and good environment make it an ideal location to grow the industry. On the other hand, Russian miners have been subjected to sanctions as a result of the sanctions imposed by the West in response to the invasion of Ukraine. This year, Russia’s contribution to the worldwide monthly hash rate has fallen to 4.66 percent.

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.