Hemant Singh – Mumbai Uncensored, 31th May 2022
After falling out of the top three in worldwide mining hash rate share, Russia’s crypto mining business now consumes more energy than the country’s agricultural sector, indicating indications of recovery.According to a fresh official assessment, the percentage of crypto miners in Russia’s power consumption pyramid has already surpassed 2%. In light of this, the country’s industry minister feels it is time to regulate the sector and bring it out of the shadows.
Miners use more energy in comparison to farmers.
According to Vasily Shpak, Russia’s Deputy Minister of Industry and Trade, miners harvesting digital currency utilise more than 2% of the total electricity used in the Russian Federation, and their acts must be “whitewashed” and supervised. During a lecture held by the ruling United Russia party, Shpak said: “This is higher than the cost of power for agriculture.” In this sense, we can’t help but think of mining as a business.
The government official highlighted during the event devoted to the development of blockchain technology and the regulation of digital financial assets that cryptocurrency mining is currently in the “grey zone,” It will not be taxed in any way and poses a risk to those who engage in it. Shpak believes the government can bring the industry out of the shadows and make it more transparent. The quantity of electricity required by mining will decrease in the future, according to the deputy minister, as the mining sector develops toward less energy-intensive mining methods.Nonetheless, mining operations would undoubtedly continue to consume electricity, according to Shpak, as reported by Interfax. He went on to say, “Our view is very clear: mining must be recognised, controlled, and established as a legitimate economic activity.”
Despite the Bank of Russia’s demand for a blanket ban on all crypto-related operations, Russian officials are currently seeking to legitimise bitcoin mining as one of the most important crypto-related enterprises.The Russian parliament got a bill in late April aimed at attaining this goal. MPs rejected a clause that would have given mining corporations a one-year tax and customs amnesty when the draught legislation was recently modified.
Russian officials believe the industry should be developed, noting the country’s competitive advantages in terms of plentiful energy resources and a good environment. Russian miners, on the other hand, have been sanctioned as a result of the sanctions imposed by the West in reaction to the invasion of Ukraine, depriving the country the capacity to circumvent the restrictions. Russia’s share of the global average monthly hashrate decreased to 4.66 percent this year.
