Russian energy ministry backs legalisation of mining

Russia’s Ministry of Energy has backed the proposal to legalise cryptocurrency mining, and the ministry is also working with the Ministry of Finance on mining taxation. The information was said by Anton Gorelkin, deputy head of the State Duma committee on information policy.

The Ministry of Energy believes that miners should consume electricity at the tariff for ‘other’ consumers, rather than the tariff for households, Gorelkin said, citing a letter from the ministry.

The ministry noted the risks to the quality and uninterrupted electricity supply in the event of mass mining in residential areas, as the activity would significantly increase the load on the grids.

“The ministry believes that these negative effects can be offset if mining is classified as a form of commercial activity and an appropriate taxation model is created,” noted Gorelkin.

Earlier in the Ministry of Energy stated that it would be more appropriate to allocate mining sites regionally rather than at the federal level.

The Ministry of Industry and Trade and the Ministry of Construction of the Russian Federation proposed to establish an experimental legal regime for cryptocurrency mining.

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