Bitcoin miners will pay more for electricity consumption in Russia

Bitcoin miners will pay more for electricity consumption in Russia

Key facts:
  • Tariffs for increased electricity consumption will be determined by the authorities of each region.

  • The regulator says that digital mining is one of the activities that overload the electricity grid.

Bitcoin miners and other cryptocurrencies that carry out their activities on the territory of the Russian Federation will have to pay a higher rate for the electricity they consume. This was determined by the Federal Antimonopoly Service (FAS), a government agency in charge of supervising the prices of electricity used by Russians.

The regulatory body will implement new guidelines for the calculation of electricity rates for the population and A higher amount will apply for those who consume above what they classify as the norml, as they are reporting local digital media

The measure is supposed to separate household electricity consumers from those who use it for profit.

a local politician said that the low electricity rates are a problem due to the spread of digital mining in the country. He believes that “abnormal” consumption creates an overload of electrical networks that were not designed for such capacities.

“The problem is particularly relevant in several regions where electricity is historically cheaper for the population,” said Pavel Sklyanchuk of the Russian Popular Front “Housing and Urban Environment”.

Therefore, FAS is calculating how many kilowatt hours a resident of an apartment or house that has air conditioners, irons, televisions and other appliances can consume. This with the idea of ​​differentiating them from those that consume energy for commercial purposes.

Bitcoin miners will pay more for electricity consumption in Russia
Bitcoin miners will pay a higher fee than the rest of the Russian population, for the amount of energy their equipment consumes. Source: agnormark /adobe.stock.com.

Anything that goes beyond the norm will have to be paid at a higher rate and Bitcoin miners and other cryptocurrencies are one of these items that will have to pay higher fees.

Antitrust officials have mandated that each region independently set limits on electricity consumption, both domestic and commercial. This taking into account the characteristics and needs of each locality.

The move comes nearly a month after the Russian Federation Ministry of Economic Development submitted proposals to the Ministry of Finance on cryptocurrency regulation and mining.

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Bitcoin miners will pay more for electricity consumption in Russia

The proposal focuses on establishing a threshold for the electricity use for “home” miners with the idea of ​​establishing «a rate of social consumption for them», according to the report from a local medium.

Besides, It was proposed connect mining farms to energy sources with lower rateswhich would be possible by moving digital mining activity to regions that have a stable surplus of electricity.

Russia has been occupying the second place in the country ranking Europeans with the cheapest electricity for the population. The leader is Kazakhstan. Because of that, both countries now concentrate greater mining power or hash rate (hashrate) of the Bitcoin network than, in previous years, as more digital miners locate in their territories.

Bitcoin miners will pay more for electricity consumption in Russia
The Cambridge University Mining Map shows how Bitcoin mining power has increased in Russia and Kazakhstan offering cheaper electricity. Source: ccaf.io.

A bill to regulate Bitcoin is underway in Russia

As previously reported by CriptoNoticias, the creation of a legal framework for Bitcoin and cryptocurrencies in Russia seems to have remained among the government’s priorities, in the context of the war against Ukraine.

A proposed law “On mining in the Russian Federation” was submitted to the Duma on Friday, April 29. The project aims take the cryptocurrency industry out of the “grey” zonegiven that the country is rich in energy resources and favorable climatic conditions for mining.

the bill provides for the creation of a special registry of cryptocurrency minerswhich will be maintained by an authorized federal agency.

If the law is approved, the people dedicated to mining bitcoin and other cryptocurrencies, they will be able to register as entrepreneurs or self-employed workers if their electricity consumption exceeds certain limits set by the government.

Only legal entities and registered individuals will be able to mine cryptocurrencies, reported this medium, based on what is established in the document.

If the Duma deputies approve the law, a grace period will be announced for Bitcoin miners to adapt to the new legal framework. During that time they will be able to resolve all the details that are pending such as the importation of new equipment, payment of taxes and compliance with other current regulations.

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