According to the most recent government estimate, two percent of Russia’s total electricity consumption comes from crypto miners.
After Russia’s fall from the top three global Bitcoin (BTC), mining hash rate shares, the country’s crypto mining sector has seen its energy consumption share surpass that of agriculture. This shows signs of recovery.
Vasily Shpak, Russia’s Deputy Minister for Trade and Industry, called for the law to bring the mining industry under its jurisdiction in light of the recent mining estimate. He stated:
“Does anyone know the amount of mining in our overall electricity generation map? Let me tell you, it’s more than 2%. This is higher than the cost for electricity for agriculture. This is mining as an industrial activity.
Russia’s crypto mining industry falls within the “gray area.” Although it isn’t banned, it isn’t regulated, which poses a risk to those who are involved. He also stated that crypto mining would shift to more energy-intensive methods once it is regulated.
Related: Russia considers crypto to be a way of making international payments amid sanctions: Report
Just days after the updated crypto mining bill was introduced in the country, the calls to regulate the crypto mining industry have been made. Two sub-sections were removed from the updated bill. They included an obligation for miners to register on a special registry, and a one year tax amnesty for all registered.
Mikhail Mishustin, the country’s prime minister, has also been active in supporting the investigation into the crypto mining sector.
“We believe that we should also discuss mining issues in order to stimulate fixed capital investment. This is the creation data centers and associated infrastructure.”
However, the Russian central bank continues to demand a blanket ban on all mining operations in the country.
Bitcoin mining rate share. Source: CBECI
According to the most recent report by the Cambridge Bitcoin Electricality Consumption Indice (CBECI), Russia’s BTC mining rate share fell to 4.55%, behind China, Kazakhstan, and the United States.