- Russia’s Ministry of Energy is pushing for the legalization of industrial crypto mining.
- Pavel Snikkars from the ministry said that miners should be recognized as a category of energy consumers and taxation should be introduced for this group.
- The ministry is also proposing certain restrictions on the generating capacities made available to miners.
Russia’s Ministry of Energy has called for lawmakers to press ahead with a much-anticipated bill related to crypto mining. 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.” The Vice Minister added that the ministry was also planning to propose “certain restrictions” on the “generating capacities” made available to miners.
Problem with Current Situation
Crypto mining is not recognized as an industry in Russia, so in most situations energy firms cannot charge miners at industrial rates. Instead, many miners are charged at (subsidized) residential rates. This imperfect solution has been found lacking by both energy providers and miners alike. As such, the Ministry of Energy has proposed creating a special crypto mining rate, which would be separate from both industrial and residential rates.
Miners themselves have long called for Moscow to “hurry up” and legalize their industry. The Vice Minister warned that “the whole country” could “pay” if miners were allowed to continue unchecked.