Russian Lawmakers Want to Block Crypto Miners from Accessing Electricity Subsidies

Russian lawmakers say they want to block crypto miners from using subsidized electricity, claiming Bitcoin miners “damage the economy” by using cheaper power. The state-run news agency TASS reported that the lawmaker and State Duma Energy Committee member Boris Gladkikh sent a letter to Deputy Prime Minister Tatyana Golikova on the matter. Block Crypto Miners from Using Subsidized Power, Urges MP Gladkikh’s letter reportedly includes a request that the government “deprive” miners of access to “preferential electricity tariffs.” Russian Deputy Prime Minister Tatyana Golikova. Source: government.ru [CC BY 4.0] Gladkikh noted that “interest in crypto mining is growing rapidly” in Russia. And he said that mining “is sometimes carried out using subsidized electricity rates provided by the state.” The lawmaker said that “when miners pay for electricity at reduced rates or through subsidies,” this “results not only in economic losses, but also in negative social consequences.” “We propose making appropriate changes to the current legislation. The government should cancel [energy] benefits for [miners].” Russian lawmaker Boris Gladkikh Europe is set for the coldest winter since Russia’s invasion of Ukraine, pushing up energy costs as the continent dips into its gas reserves at a faster-than-usual rate https://t.co/1pUqncCQOs — Bloomberg (@business) November 27, 2024 Russia operates a complicated system of energy benefits and subsidies, with much of the population allowed to pay lower residential rates for power. This year, however, Russian regions have started to switch to differentiated electricity tariffs. Consumers are classed into three groups: preferential users, “economically justified” users, and commercial customers. Industrial miners must pay the highest of these three rates. However, the situation for home-based crypto miners is more complex. Russian lawmaker and State Duma Energy Committee member Boris Gladkikh. (Source: Rossiya24/Screenshot) Power Usage Threshold Set This year, Moscow has ruled that most private miners do not need to declare their operations or earnings, provided they do not exceed power usage thresholds of 6,000 kWh per month . However, in some regions, miners could realistically stay within this threshold while still paying “preferential tariffs” on their power. Gladkikh’s proposal appears to call for an end to this, with the MP calling on the state to block crypto miners from accessing these subsidies. However, such a plan would likely face serious challenges. The UK government expanded its sanctions against Russia’s energy industry on Monday, blacklisting dozens of tankers as well as two insurers https://t.co/i3AMSHnOUh — Bloomberg (@business) November 25, 2024 The popularity of crypto mining is ballooning in Russia, where mining hardware is now selling at its fastest rate since the start of the year. Illegal crypto mining is also on the rise, with many miners tapping directly into electrical grids to power their rigs . Power providers claim this is causing major shortages in many areas. But even miners who do not use illegal connections could prove hard to track down if the government decides to accept Gladkikh’s proposal. The post Russian Lawmakers Want to Block Crypto Miners from Accessing Electricity Subsidies appeared first on Cryptonews .

Source: cryptonews