Crypto Miners Consume More Energy Than Agric Sectors
Cryptocurrency mining is not forbidden in Russia, at the same time it is not within the coverage of the country’s law. This makes it risky business to investors. However, after the announcement of the latest electricity consumption estimate, the Russian regulators clamored for the regulation of crypto assets.
Data from the estimate showed that the crypto mining industry consumes over 2% of the total electricity supply in the country. It also revealed that crypto mining consumes more electricity than the agricultural sector in the country.
However, the rate was higher while Russia was among the top three countries with the highest BTC mining hash rate. Russia has lost about 4.56% of its initial mining hash power. According to the recent reports from a electricity consumption Index, Russia is now trailing behind China, United States and others.
Many Called For Regulation Of the Mining Industry
While reacting to the estimate, Vasily Shpak, a deputy minister in Russia, called for the regulation of the crypto mining industry. He considered recognizing the mining industry under the law as the only reasonable way to cover the electricity consumption. He reasoned that if crypto could consume more electricity than Agriculture which is a major sector of the country, then it is only proper for it to be regulated as well.
The Russian regulators maintain a neutral ground on the crypto industry as they neither ban it nor do they regulate it. This makes it a risk-filled industry to venture in. While speaking, the minister ascertained that after the regulation of the crypto mining, it would consume more electrical energy intensively.
Furthermore, the clamor for the regulation of the crypto mining industry started a few days after its bill was upgraded. The legislators who reviewed the bill had cut out two subsections. The first was the obligation of mining nodes to be registered under a specified regulator body. While the second was an amnesty granted to registered members which is supposed to last for a year.
After the removal of these subsections had pushed several government offices to call for the regulation of the crypto mining industry. Apart from Vasily Shpak, Russian prime minister, Mikhail Mishustin had also sought for the mining industry to be regulated. While giving a speech in April, he pointed out that mining issues should be thoroughly discussed amongst the country’s regulators. He explained that with the proper utilization of the blockchain industry, the country’s investment and fixed capital would increase.
Contrary to the opinions of other regulators, Russia’s central bank is bent on having crypto banned in the country.