• Russia’s Ministry of Energy is pushing for the legalization of industrial crypto mining and has proposed creating a special crypto mining rate.
• The Vice Minister of Energy, Pavel Snikkars, said that the ministry supports the introduction of taxation for miners and wants to identify them as a category of energy consumers.
• A number of crypto mining hotspots have sprung up in Russia in recent years, with Irkutsk Oblast in Siberia being one example.
Russia’s Ministry of Energy Pushes to Legalize Crypto Mining
Ministry Wants Lawmakers to Introduce Taxation for Miners
Russia’s Ministry of Energy is pushing for the legalization of industrial crypto mining, and wants lawmakers to press ahead with a much-anticipated mining-related bill. Per the Russian news agency Tass, the ministry made the comments at the weekend, during the St. Petersburg International Economic Forum. Pavel Snikkars, the Energy Vice Minister, said that the ministry “supports” the legalization of mining and “expects” lawmakers to approve “the introduction of taxation for miners.”
Ministry Proposes Special Crypto Mining Rate
The Vice Minister added that the Ministry was also planning on proposing “certain restrictions” on generating capacities made available to miners. A number of crypto mining hotspots have sprung up in Russia in recent years, with Irkutsk Oblast in Siberia entering into a somewhat complicated relationship with crypto mining operations due to lack of recognition as an industry within Russia itself. The ministry has attempted to intervene while lawmakers drag their feet, allowing energy providers to identify miners and bill them at higher rates- but this imperfect solution has been found wanting; instead proposing a special crypto mining rate separate from both industrial and residential rates.
Miners Call for Legalization
Miners themselves have long called for Moscow to hurry up and legalize their industry so they can be charged at appropriate industrial rates rather than subsidized residential ones.
The Russian Ministry of Energy’s push towards legalizing cryptocurrency mining could benefit both miners who will be able to pay fair prices as well as authorities who will be able generate taxes from such activities- though only time will tell whether or not these plans come into fruition