The Russian Ministry of Energy is making strides in accommodating crypto miners by offering them access to surplus electricity. The nation's crypto pivot continues to gain momentum, with the ministry's plans outlined by Russian Energy Minister Sergei Tsivilev on September 5 during the Eastern Economic Forum in Vladivostok.
Tsivilev emphasized that while fostering the crypto mining sector is not the government's top priority, allowing legal players to utilize surplus power would benefit both miners and power providers. He clarified that only legal miners who are registered with the government and pay taxes would be eligible to receive this surplus energy.
crypto-miners-ready-for-energy-injection-">Russian crypto Miners: Ready for Energy Injection?
The move aims to bring miners operating in the unregulated "gray zone" into compliance. This opportunity allows miners to transition to a more accountable setup, contributing positively to the economy and tax revenue.
While miners will have to pay taxes on their mined coins, they may only be required to pay a nominal fee for the electricity used. This arrangement is expected to benefit all parties involved, promoting greater efficiency and contributing to the national economy.
Benefits for Everyone, Minister Explains
Aside from the economic benefits, Tsivilev highlighted the importance of prioritizing socially significant facilities and the development of Russian industries. The government aims to strike a balance between supporting the mining sector and maintaining focus on key sectors for national growth.
The government's cautious approach stems from concerns raised by various regions about power supply overloads caused by miners. President Vladimir Putin himself addressed the escalating electricity consumption for mining, highlighting the challenges this trend poses for the country.
Power Supply Concerns
Recognizing the potential strain on power systems, the Russian government's new mining law provides mechanisms to regulate mining activities and protect the integrity of the power grid. The law empowers the government to intervene in specific regions where mining activities may strain the power supply.
Furthermore, the law prohibits power industry players from directly participating in crypto mining and allows regions to impose temporary bans on mining operations. Collaboration between major oil firms and miners on pilot projects involving associated gas indicates a concerted effort to find sustainable solutions for energy consumption in the mining sector.
