Russia proposes partial tariff cuts for crypto-mining connections.

The Ministry of Economic Development of the Russian Federation proposes to permit cryptocurrency mining in regions with a sustained surplus of electricity generation and to introduce affordable tariffs for its use by companies. On this, сообщают «Izvestia», citing the ministry’s press service.

It is envisaged that the reduced tariffs would apply to the connection of mining farms and data-processing centres to energy sources, as well as to the electricity itself.

In the ministry’s view, this would help avoid risks of capacity shortages for supplying housing and industry in other regions.

Overall, cryptocurrency mining is recommended to be treated as a commercial activity, with taxes paid on the conversion of cryptocurrencies into rubles.

Against this backdrop, the ministry is considering setting a threshold for electricity use by individuals. If that threshold is exceeded, it would signal that consumers are carrying out mining and would lead to a higher tariff for them, comparable to business rates.

Earlier, the Russian government approved the concept of regulating the circulation of cryptocurrencies. On its basis a draft version of the corresponding bill is already ready. According to Anatoly Aksakov, head of the State Duma Committee on the Financial Market, the document contains provisions on mining regulation.

Earlier, the Finance Ministry described a preliminary scheme for taxing cryptocurrencies. The ministry estimated budget receipts from legalising the market at 10-15 billion rubles, adding that the main portion of payments will fall on miners.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.