The Russian Ministry of Power is seeking to introduce particular electrical energy tariffs for cryptocurrency miners following a migration of the business into the nation from close by China.
Russian Power Minister Nikolai Shulginov introduced Wednesday that the authority is engaged on a brand new framework to distinguish tariffs between basic utilization and cryptocurrency mining, native information company RBC reported on Wednesday.
Shulginov mentioned that cryptocurrency miners in Russia mustn’t devour electrical energy at residential tariffs, stating:
“We will’t let miners capitalize on the state of affairs on the expense of low residential electrical energy tariffs […] In an effort to keep the reliability and high quality of energy provide, we consider it’s crucial to ban miners from consuming electrical energy at residential tariffs.”
Russia’s Irkutsk area, situated about 1,700 kilometers from China, has reportedly seen its vitality consumption charges exceed final yr’s by nearly 160%. Irkutsk Governor Igor Kobzev pointed to “avalanche-like progress” of vitality consumption within the jurisdiction, blaming unlawful crypto mining exercise worsened by the exodus of miners from China.
One of many greatest areas of Siberia, the Irkutsk area is wealthy with vitality sources, internet hosting a number of giant hydroelectricity stations in cities corresponding to Irkutsk, Ust-Ilimsk and Bratsk. The area is dwelling to some crypto mining data centers by BitRiver, the nation’s largest crypto mining colocation providers supplier.
BitRiver founder and CEO Igor Runets instructed Cointelegraph that the corporate absolutely helps the most recent initiative by the ministry of vitality:
“It’s honest and economically sound. Furthermore, it’ll assist miners enter the authorized area, so the state can take step one in the direction of regulating the business, which can finally result in transparency of your complete business.”
Runets mentioned that the corporate pays for its information middle electrical energy at enterprise buyer charges, paying “2.5 or 3 occasions greater than people.”
Russia has become one of the top locations for Bitcoin (BTC) mining exercise following the Chinese language miner capitulation. In keeping with the Cambridge Bitcoin Electrical energy Consumption Index, Bitcoin miners in Russia account for 11% of the whole international BTC mining hash price distribution, bested by solely Kazakhstan and the US.