Key Takeaways
- Russia could ban crypto mining during power shortages in energy-starved areas.
- The country’s Ministry of Energy proposed that crypto miners generate electricity in regions with shortages.
- Russia’s government is also looking into new tax options for the various sections of crypto mining.
Russia is exploring the possibility of banning crypto mining in low-energy regions during power shortages.
The proposal comes as Russia’s Ministry of Energy looks to tighten control over the “uncontrolled growth” of crypto mining, which the government legalized in the summer.
Potential Russian Crypto Mining Ban
According to local news sources, on Wednesday, Oct. 23, Deputy Minister of Energy Yevgeny Grabchak proposed that crypto miners should not gain electricity at general market prices in subsidized regions.
In several regions across Russia, consumers buy electricity under-regulated contracts. These often come with government subsidies to ensure affordability, particularly for households and small businesses.
Grabchak claimed it would benefit the government if crypto miners generated their own electricity in regions with shortages.
“We are putting forward an initiative that in regions with shortages, mining should be prohibited during periods of shortages,” Grabchak said.
“Therefore, it is advisable to cancel the non-discriminatory approach for mining and encourage them to switch to their own generation in zones of shortages,” Grabchak added.
The proposal follows the government’s passing of a new law, which could become enforceable on Nov. 1. The law gives the Cabinet of Ministers the authority to impose a blanket ban on crypto in specific regions or the whole country.
Tax on Mining
In addition to curbing the mining industry, the government is also looking into new tax options for the various sections of crypto mining.
According to State Duma Deputy Anton Gorelkin, one of the new options is income tax on mining in data centers.
Under the proposed two-stage framework, miners would face an initial tax payment on their mined coins as soon as they enter their digital wallets.
Then, in the second stage, the Federal Tax Service (FTS) would impose another tax payment or deduction of losses. This would occur when miners sell or transfer mined crypto, depending on its sale value.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
