Crypto mining falls under the “gray zone” in Russia, which means even though it’s not banned, it doesn’t fall under the purview of law which could pose risks for those involved.
Crypto miners account for two percent of the total electricity consumption in Russia, according to the latest government estimate.
The energy consumption share of the crypto mining industry has exceeded the country’s agricultural sector, showing signs of recovery after Russia fell out of the top three in the global Bitcoin (BTC) mining hash rate share.
Russia’s deputy minister of trade and industry Vasily Shpak called for bringing the mining industry under the purview of law in the wake of the recent mining estimate. He said:
Crypto mining in Russia falls under the “gray zone’ where even though it is not banned, it is not regulated either, which creates a risk for those involved in the industry. The deputy minister also assured that once the crypto mining industry is regulated, it would move toward more energy-intensive methods.
The calls for regulating the crypto mining industry come just days after legislators in the country introduced an updated version of the crypto mining bill. The updated bill removed two sub-sections – the obligation for mining operators to join a special registry and a one-year tax amnesty for all those who’ve registered.
Apart from the deputy minister of trade, the country’s prime minister Mikhail Mishustin has also batted for looking into the crypto mining industry, In April Mishustin has said:
The Russian central bank on the other hand continues to call for a blanket ban on mining operations in the country.
Bitcoin mining hash rate share. Source: CBECI
Russia’s BTC mining hash rate share dropped to 4.55% behind Kazakhstan, China and the United States in the latest report from the Cambridge Bitcoin Electricity Consumption Index (CBECI).