In Russia, crypto mining is in the “gray zone,” which means it’s not illegal but also isn’t covered by the law, which could be dangerous for those who do it.
According to the most recent government estimates, cryptocurrency miners consume 2% of total electricity consumption in Russia.
The crypto mining industry’s energy consumption share has surpassed that of the country’s agricultural sector, indicating signs of recovery after Russia dropped out of the top three in the global Bitcoin (BTC) mining hash rate share.
Following the recent mining estimate, Russia’s deputy minister of trade and industry, Vasily Shpak, has called for bringing the mining industry under the jurisdiction of the law. He said:
Crypto mining in Russia falls into the “gray zone,” where it is neither prohibited nor regulated, posing a risk to those involved in the industry. The deputy minister also stated that once the cryptocurrency mining industry is regulated, it will shift to more energy-intensive methods.
The calls for crypto mining regulation come just days after the country’s legislators introduced an updated version of the crypto mining bill. The bill was amended to remove two sub-sections: the requirement for mining operators to join a special registry and a one-year tax amnesty for all those who have registered.
Apart from the deputy trade minister, the country’s prime minister, Mikhail Mishustin, has also called for an investigation into the crypto mining industry. Mishustin stated in April:
The Russian central bank, on the other hand, is still calling for a total ban on mining operations in the country.
According to the latest Cambridge Bitcoin Electricity Consumption Index report, Russia’s BTC mining hash rate share has dropped to 4.55 percent, trailing Kazakhstan, China, and the United States (CBECI).