According to the most recent Russian government survey, crypto miners account for 2% of the total electricity in the country.
Following the most recent mining prognosis, Russia’s Deputy Minister of Trade and Industry Vasily Shpak called for the crypto mining business to come forth under the rule of law.
More than the Country’s Allocation
According to a new study, the energy consumption share of the crypto mining sector has exceeded that of agriculture in Russia, suggesting signs of recovery. After Russia departed the top three countries for Bitcoin mining hash rate share, it was no longer among the top three.
The legality of crypto mining in Russia is characterized as a “gray area.” It implies that it is neither prohibited nor regulated, posing a danger to those who participate in it. When the crypto mining company has been brought under control, the deputy minister vows that it will transition to more energy-intensive processes.
The Congested Crypto Mining Industry in Russia
The Russian Federal Service for Financial Monitoring has recently stated that it will be taking action against those who illegally mine cryptocurrency. In their report, the service revealed that it had detected more than $50 million in crypto-related crimes in the past year.
This is not the first time that the issue of crypto mining energy consumption has been brought to light. In November of 2017, it was reported that Russia was home to around 20% of the world’s Bitcoin mining hash power.
At the time, Russian President Vladimir Putin had called for regulation in the cryptocurrency space. However, no regulations have been put in place until recent events.
Only days after the country’s lawmakers proposed an amended version of the crypto mining bill, fresh proposals for cryptocurrency mining rules surfaced. The formal registration and acceptance of a one-year tax amnesty were removed from two subsections of the new legislation.
Meanwhile, the Russian central bank proceeds to press for a total ban on mining operations.
According to the most recent Bitcoin Electricity Consumption Index from Cambridge University, Russia’s BTC mining hash rate share has fallen to 4.55 percent. It was followed by Kazakhstan, China, and the United States.