High energy consumption in Russia, allegation on Crypto miners

bitcoin mining in iran

The increasing energy consumption rate in Russia is promoting issues for crypto mining firms. 

Russia is a non-friendly crypto country but a recent statement by the Russian officials claimed that Russia is looking to adopt blockchain technology to bring advancement in its financial infrastructure. 

Read also: Bank of Russia want to estimate how much bitcoin their citizens holding

Recent records show that a big spike occurs in the energy consumption rate in Russia & Belarus. And the whole credit is going to the crypto mining operations of Russia and Belarus. 

The governor of Irkutsk Oblast,  Igor Kobzev, filed a complaint against the illegal crypto mining operations. According to the governor, the usage of electricity reached  4.7 billion kWh within half of 2021. While 5.6 billion kWh consumption was in total by 2020. And claimed that crypto mining operations are using low rates of electricity which are offered for domestic and general mining purposes.

In response to the complaint made by Igor Kobzev, the energy minister of Russia, Nikolai Shulginov, stated that higher tariffs could be on the cards for miners, which are exploiting the tariffs which are issues for general mining operations.

So now, there are huge chances that the government of Russia may take action to limit the supply of electricity or will increase the cost of electricity for crypto mining operations. 

Crypto mining in Russia & Belarus

Amid huge regulatory uncertainty in Russia, people are engaged in crypto mining operations. In September 2021, officials of Russia released a notice for the crypto miners to register with the authorities, so that fair tax charges can be imposed on crypto mining operations. 

While crypto mining operations are fully legal in Belarus since March 2018. And the officials of Belarus already imposed high electricity consumption charges on the mining operations.

Read also: Coinbase partners with NBA & WNBA